AssessorsJournalMagSpring2024 web - Flipbook - Page 20
JOURNAL
TECHNICAL
THE CHALLENGE
FROM CHINA
BYD aims to increase its dealer network
from 20 to 80 sites by the end of this
year and each retailer will be served by
an approved bodyshop – either in-house
or independent approved.
Having anticipated China’s emergence as a mass car producer,
Thatcham Research began working with its vehicle manufacturers
several years ago. Now with several Chinese brands 昀氀ooding
Europe and moving into the UK, Dean Lander, Head of Repair
Sector Services, discusses the challenges surrounding the repairs
of these new models as well as the positive steps being taken to
ensure the sector is ready for this in昀氀ux from the East.
he electric dreams of
the world’s emerging
car producers are fast
becoming a reality –
and that has created an
immediate headache for bodyshops
across the UK.
T
According to reports almost half a
million Chinese-made vehicles were
registered in Europe during the 昀椀rst
nine months of 2023. The competitive
price points of some of these car
brands are attractive to consumers,
and sales are increasing rapidly as a
result. But insuring these vehicles and
managing them through the claims
supply chain presents the industry with
a big challenge.
Nor is the challenge restricted to
one global region. The likes of India
and Vietnam are also fast producing
new models. All market entrants face
a dif昀椀cult problem: how can they
guarantee that their vehicles will be
insured in the UK, in the absence of
essential historic repair data to build
con昀椀dence and enable clarity in terms
of pricing risk?
Competitive pricing might be an
attractive proposition for consumers,
but the hassle and expense of repair
20
caused by a dual lack of data and parts
could quickly turn any perceived gain
into a loss through expensive repair
costs and high insurance premiums,
if indeed insurance is made available
at all.
Inevitably, bodyshops also risk delays in
the workshop caused by a gap in both
knowledge and components.
That’s why Thatcham Research is
supporting these vehicle manufacturers
(VMs), insurers and repair businesses,
offering insight and experience to
bring safe, secure, sustainable mobility
solutions to the UK.
Will the new wave engulf bodyshop
businesses?
We foresaw the rapid growth in China’s
share of the automotive market several
years ago. While Electric Vehicles
(EVs) have been imported from the Far
East for some time – the MG6 arrived
here as long ago as 2011 – interest
has ramped up since the middle of
the decade when the UK Government
began to encourage motorists to
switch to electric powertrains.
We started to work with China’s
growing legion of VMs in the last
Dean Lander, Head of Repair Sector
Services at Thatcham Research.
decade to highlight the need for
safe, secure, sustainable mobility.
Disappointingly, while we made good
progress, our efforts were stalled by
the pandemic. During the three years
when it was dif昀椀cult to visit automotive
昀椀rms in the country – of which there are
at least 15 groups, housing 75 brands
– launch planning at VMs continued
apace.
Facilitating direct
dialogue between
China’s VMs and the
UK repair sector is
another item that’s
high on our agenda.
Now, with vehicle production in full
昀氀ow again, we are experiencing a bow
wave of Chinese cars entering the UK
car parc. While the volume remains
small as a proportion of the entire car
parc, the scale of the challenges they
bring is not.
THE ASSESSORS JOURNAL | SPRING 2024 | www.iaea-online.org/news/the-assessor
