ARC360 hosted its fourth Breakfast Think Tank recently, when attention was turned to the growing impact of new international players entering the UK sector.
After considering skills, electric vehicles and volumes in previous Think Tank sessions, this week the focus was turned on new brands within the domestic market and how they are impacting claims and repairs in terms of parts availability, methods, and insurance.
It was revealed that there are now 75 new brands with European export ambitions, with many of these now coming from China.
And while some European countries might be more cautious to external influence, preferring instead to support their own domestic automotive manufacturing interests, the UK is at the moment open to Chinese investment.
As such, it is expected that a flood of brands will enter the market in the coming years.
Setting the pace so far is BYD, which has already launched three models into the UK – the SEAL, DOLPHIN, and ATTO. It plans to release four more within the next year as its influence continues to grow.
Meanwhile, ZEEKR – backed by Geely Automobile Holdings – has recently secured Euro NCAP approval, while Great Wall Motors has established a UK footprint through its sub-brand ORA, which has released the Funky Cat.
The challenge comes though in differentiating between the brands, and separating the long-term successes from short-term flash in the pans.
One repairer said, “We are following a watching brief at the moment. Some brands are launching into the UK with no aftersales strategy at all so we need to ask ourselves if we can repair the vehicle safely, do we have access to parts and methods?”
In some cases the answer is yes. BYD, which aims to become the largest vehicle manufacturer in the world, is working closely with UK organisations to ensure a smooth introduction to the UK, but others it was suggested appear a little less-proactive.
“Chinese vehicle manufacturers behave differently so the market will need to adjust. There is a level of openness from some brands but others are not always engaging with insurers, there are no methods or parts and that drives up the cost of even minor repairs. I think we will see a massive mix of repairability and quality over the 75 models, so we can expect quite a bumpy road for a little while.”
