JOURNALTECHNICALTHE CHALLENGEFROM CHINABYD aims to increase its dealer networkfrom 20 to 80 sites by the end of thisyear and each retailer will be served byan approved bodyshop – either in-houseor independent approved.Having anticipated China’s emergence as a mass car producer,Thatcham Research began working with its vehicle manufacturersseveral years ago. Now with several Chinese brands 昀氀oodingEurope and moving into the UK, Dean Lander, Head of RepairSector Services, discusses the challenges surrounding the repairsof these new models as well as the positive steps being taken toensure the sector is ready for this in昀氀ux from the East.he electric dreams ofthe world’s emergingcar producers are fastbecoming a reality –and that has created animmediate headache for bodyshopsacross the UK.TAccording to reports almost half amillion Chinese-made vehicles wereregistered in Europe during the 昀椀rstnine months of 2023. The competitiveprice points of some of these carbrands are attractive to consumers,and sales are increasing rapidly as aresult. But insuring these vehicles andmanaging them through the claimssupply chain presents the industry witha big challenge.Nor is the challenge restricted toone global region. The likes of Indiaand Vietnam are also fast producingnew models. All market entrants facea dif昀椀cult problem: how can theyguarantee that their vehicles will beinsured in the UK, in the absence ofessential historic repair data to buildcon昀椀dence and enable clarity in termsof pricing risk?Competitive pricing might be anattractive proposition for consumers,but the hassle and expense of repair20caused by a dual lack of data and partscould quickly turn any perceived gaininto a loss through expensive repaircosts and high insurance premiums,if indeed insurance is made availableat all.Inevitably, bodyshops also risk delays inthe workshop caused by a gap in bothknowledge and components.That’s why Thatcham Research issupporting these vehicle manufacturers(VMs), insurers and repair businesses,offering insight and experience tobring safe, secure, sustainable mobilitysolutions to the UK.Will the new wave engulf bodyshopbusinesses?We foresaw the rapid growth in China’sshare of the automotive market severalyears ago. While Electric Vehicles(EVs) have been imported from the FarEast for some time – the MG6 arrivedhere as long ago as 2011 – interesthas ramped up since the middle ofthe decade when the UK Governmentbegan to encourage motorists toswitch to electric powertrains.We started to work with China’sgrowing legion of VMs in the lastDean Lander, Head of Repair SectorServices at Thatcham Research.decade to highlight the need forsafe, secure, sustainable mobility.Disappointingly, while we made goodprogress, our efforts were stalled bythe pandemic. During the three yearswhen it was dif昀椀cult to visit automotive昀椀rms in the country – of which there areat least 15 groups, housing 75 brands– launch planning at VMs continuedapace.Facilitating directdialogue betweenChina’s VMs and theUK repair sector isanother item that’shigh on our agenda.Now, with vehicle production in full昀氀ow again, we are experiencing a bowwave of Chinese cars entering the UKcar parc. While the volume remainssmall as a proportion of the entire carparc, the scale of the challenges theybring is not.THE ASSESSORS JOURNAL | SPRING 2024 | www.iaea-online.org/news/the-assessor
It seems that your browser's pop-up blocker has prevented us from opening a new window/tab. Please click the button below to open the link manually.
