will insurance companies pay more for Chinese models?

The Chinese electric car manufacturer, BYD, managed to dethrone Tesla from its first place as the world's largest exporter thanks to its competitive prices. But it may well be that this advantage of Chinese models will be short-lived. British insurance companies are increasingly reluctant to insure vehicles made in China, and they continue to increase the price of insurance premiums.

British insurers shun Chinese electric cars

British insurers are showing increasing reluctance to insure electric cars from China. BYD Seal, GWM Ora 03 and even certain MG models are seeing their insurance premiums rise. This problem is not isolated to Chinese electric car models. All owners of electric cars face higher insurance premiums than those of combustion vehicles. Nevertheless, this trend is stronger on Chinese models. It is not the quality of these vehicles that is called into question, but the delivery times of spare parts. These, just like for Tesla, are mainly due to the lack of approved garages to carry out repairs, which increases repair costs, and, ultimately, the price of insurance premiums. Fortunately, French insurance companies do not show any reluctance to insure a Chinese electric vehicle for these reasons.. Indeed, the cost of car insurance depends on various criteria, including the driver's profile, the coverage they want for their vehicle, their parking location, and the model of the latter. But French motorists should nevertheless expect to pay more for their insurance, with the latter being increasing for all types of vehicles, whether they have a combustion engine or not.

Europe less welcoming for Chinese manufacturers?

According to the Inovev firm, sales of Chinese manufacturers in Europe increased by +75% between 2022 and 2023, thanks to aggressive prices from Chinese manufacturers. A trend which is far from pleasing EU member countries, the latter preferring to give priority to European manufacturers. France has also withdrawn the eligibility of the ecological bonus from all electric car models manufactured outside Europe and the European Union is considering increasing customs duties for electric car models of non-European origin. The response from the Chinese manufacturer was not long in coming, the latter announced that it was considering building a factory in Hungary.

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