The initial quality of new energy vehicles in China has declined for the second consecutive year, with an average of 226 problems reported per 100 vehicles, according to a J.D. Power study released on Thursday.

That figure marks a 16-problem increase from 2024 but suggests a slowing rate of decline compared to the 37-problem rise recorded in 2023.

Now in its seventh year, the study was based on responses from 20,829 NEV owners who purchased their vehicles between July 2024 and January 2025.

It evaluated 122 models from 48 brands, 107 of which met the sample size requirement. Data collection occurred from January to March 2025 across 81 Chinese cities, said J.D. Power.

Problems are categorized as either design-related or defect/malfunction-related, based on issues reported by owners within the first two to six months of ownership.

Despite the continued rise in reported issues, J.D. Power says signs of progress are emerging in certain areas.

"With the continuous iteration of battery technologies, problems related to batteries and charging are decreasing," said Elvis Yang, general manager of auto product practice at J.D.Power China.

However, as NEVs enter more diverse market segments, the gap between user expectations and real-world performance — especially in areas like ride comfort and noise control — is becoming more apparent, said Yang.

Infotainment systems remain the most problematic component, with an average of 31 problems per 100 cars — unchanged from 2024, according to the study.

Among 10 major categories, the largest increase was seen in configuration and control systems (+3.5 per 100), underscoring the challenges automakers face in maintaining basic usability amid rapid technological upgrades.

In contrast, the battery and charging category saw an improvement of 3.2 per 100, led by gains in pure electric range performance — reflecting the maturity of core NEV technologies.

Plug-in hybrids and range-extended electric vehicles continue to grow in market share but both vehicle types posted higher-than-average problem rates.

PHEVs averaged 234 per 100, while REEVs stood at 235 per 100, compared to 220 per 100 for battery-only EVs, according to the study.

Design-related problems rose by 12 per 100 for PHEVs, while REEVs saw a 17 per 100 increase in malfunction-related complaints.

Notably, infotainment issues rose by 5 per 100 for PHEVs and 7 per 100 for REEVs. Driver assistance complaints also jumped 6 per 100 for REEVs.

Also, MPVs and SUVs saw increases in complaints as consumer demand for them is rising, especially in tier-one and tier-two cities. However, they posted the highest increase in faults per 100 among body types at 20.8 percent.

Common complaints involve seating — particularly in the second and third rows — including poor seat belt fit, limited adjustment range, and noise at higher speeds.

SUVs are attracting attention with their bold, boxy designs. These vehicles are popular in tier-two cities, where their market share is 8.2 percentage points higher than other NEVs.

Still, they often lack refinement, with five of the top 20 reported issues involving noise and vibration, according to the J.D. Power study.