Chinese electric cars are being shunned by insurance companies in the UK, with many new models being virtually uninsurable or subject to very high insurance premiums. This phenomenon is primarily due to concerns over high repair costs, lack of technical information, and long wait times for replacement parts.
According to Auto Express, the electric car models that are difficult to insure include the BYD Seal, GWM Ora 03, and even some MG models.
Thatcham Research, an insurance risk assessment company in the UK, believes that Chinese car manufacturers lack knowledge of European repair processes.
Ben Townsend, the head of Thatcham Research, said that he believes the Chinese electric cars themselves are not the issue, but the new electric car manufacturers entering the market do not know how to work with insurance companies.
“The message to Chinese, Indian, and Vietnamese companies is don’t just bring cars to the UK market and think you can sell them. Engage with us, understand the market, understand the steps that need to be taken so that when you sell a car to the market you have the appropriate aftersales support,” said Ben Townsend.
However, Martyn Rowley, CEO of the National Body Repair Association in the UK, pointed out that the reason Chinese electric cars are difficult to insure is because they do not have readily available spare parts, resulting in long waiting times for repairs.
Furthermore, there is another barrier. Specifically, in the domestic Chinese market, the manufacturer’s repair instructions are not always available. Moreover, while repairing a major body issue may be simple in the Chinese market due to lower labor costs, it can be costly in the UK, where labor costs are higher in Europe.
Trang Nguyen (Forum.autodaily.vn)
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