China’s state broadcaster CCTV published an investigative report documenting a practice it called “battery lockdown”: electric vehicle manufacturers using over-the-air software updates to reduce battery capacity, charging speed, and effective driving range without informing owners. The broadcast triggered formal action from the State Administration for Market Regulation, industry summits with eight automakers, and two manufacturer-initiated recalls of affected software versions.
How it works
The documented mechanism is consistent across cases. An OTA update, delivered through the same channel used for legitimate software improvements, introduces new limits on how much of the battery’s rated capacity the vehicle’s management system will allow the driver to access. Charging current is reduced, slowing the rate at which the battery refills. The odometer and state-of-charge indicator continue to report figures calibrated to the original capacity, meaning the owner sees “80% charged” while the effective capacity has already been permanently reduced.
The financial incentive is direct. Warranty claims on degraded packs cost the industry billions of yuan per year. Manufacturers must replace any pack that falls below a contractual capacity threshold - so if degradation can be reclassified as a software-controlled safety limit rather than physical cell wear, the warranty obligation does not trigger.
Scale
Formal complaints to the State Administration for Market Regulation reached 12,000 in March 2026 alone - an increase of 273% compared to March 2025. The pattern reported across complaints is consistent: a car rated for 500 km of range returns 300 km within 18 to 24 months of ownership, while all dashboard indicators read within normal parameters.
Regulatory response
Eight manufacturers were summoned for questioning. Three are under formal investigation. Two have already issued recalls on specific software versions and publicly committed to restoring original performance parameters to affected vehicles.
New rules taking effect in 2026 prohibit OTA changes to battery parameters without explicit owner notification and consent. Using software updates to conceal defects that would otherwise trigger a recall is now explicitly prohibited. A revised battery safety standard - GB38031-2025 - takes effect in July 2026.
Industry reaction
BYD, Tesla, Nio, Xpeng, Zeekr, GAC Aion, and others denied involvement in the practices under investigation. BYD issued legal warnings to media outlets and social media users it said were distributing false information. Xpeng’s legal team stated that widely circulated lists naming specific companies under investigation were AI-generated without factual basis.
Whether the denials accurately reflect the facts or represent legal positioning is not determinable from outside the investigations. The regulatory response indicates Chinese authorities regard the underlying behaviour as real: formal proceedings opened, mandatory recalls issued, new legislation enacted.
