Chinese electric vehicles face insurance challenges in UK. Here’s why

Chinese electric vehicles face insurance challenges in UK. Here’s why

Insurance companies in the UK are reluctant to insure Chinese electric vehicles (EVs), citing concerns over high repair costs, lack of technical infor

While insurance costs for EVs in the UK are already high, Chinese EVs face additional hurdles due to parts availability issues and lack of manufacturer documentation for repairs. (Photo is representational)

Chinese electric vehicles (EVs) are facing insurance challenges in the UK, with many models being either uninsurable or burdened with exorbitant premiums. Factors such as high repair costs, lack of technical information, and lengthy lead times for replacement parts are contributing to this issue. Models like the BYD Seal, GWM Ora 03, and some MG models are particularly affected, according to a report by Auto Express.

Thatcham Research, a UK-based risk intelligence company, attributes this situation to Chinese automakers’ unfamiliarity with European repair processes. The intelligence company emphasises that there is a need for better engagement between Chinese automakers and the UK insurance industry. It advises these companies to understand the market and ensure they have the right logistics in place to support their vehicles.

However, Chinese EVs are not the only ones facing insurance challenges in the UK. EV owners in general are paying nearly double the premiums compared to those with combustion vehicles. Tesla owners, in particular, are experiencing significant cost increases. Insurers are also quick to write off cars from mainstream Western manufacturers due to minor battery issues, especially those with batteries as structural elements.

The UK’s National Body Repair Association, highlights the lack of parts availability for Chinese manufacturers as a major issue. The repair association stated that repairers have had to write off models like the GWM ORA 03 due to unavailability of parts, despite these being repairable under different circumstances.

Also Read : Chinese vehicles under radar for national security data risk in United States

GWM ORA acknowledges the challenges faced by some owners in obtaining insurance coverage and claims to be taking steps to address the issue. However, the carmaker suggest that part of the problem may be due to unfamiliarity with the brand, leading to communication breakdowns and exaggerated parts lead times.

Another challenge lies in the differences between the Chinese and European repair markets. Labor rates in China are much lower, leading to a perception that repairs are simpler and more cost-effective than they actually are in Europe.

Ultimately, these insurance challenges could impact the competitiveness of Chinese EVs in the UK and European markets, especially in light of potential tariffs. The gap between the expectations of Chinese automakers and the UK insurance industry needs to be addressed to ensure a smoother path for Chinese EVs in these markets.

First Published Date: 10 Mar 2024, 17:35 PM IST


Source link

MG Hector gets new variants Shine Pro and Select Pro. Here’s what’s new

MG Hector gets new variants Shine Pro and Select Pro. Here’s what’s new

  • MG Motor India introduced new variants Shine Pro and Select Pro to Hector SUV.
MG Motor India introduced new variants Shine Pro and Select Pro to Hector SUV.

MG Motor India on Monday announced the launch of new variants for its Hector SUV. Christened Shine Pro and Select Pro, the new variants come with enhancing options for the Hector buyers. The MG Hector remains the brand’s most popular SUV so far since its arrival in India as the brand’s introductory model in June 2019. The newly launched Shine Pro variant is priced at 15,99,800 (ex-showroom) and the Select Pro is priced at 17,29,800 (ex-showroom).

The SAIC-owned British car marque has stated that the new variants of the car come with India’s largest portrait-oriented HD touchscreen infotainment system, measuring 14 inches. The Select Pro variant gets a dual-pane panoramic sunroof and the Shine Pro comes with a single-pane electric sunroof. Both variants come with a new dashboard design and a host of features including wireless Android Auto and Apple CarPlay connectivity. Other features include a wireless charger, and a fully digital instrument cluster with a 17.78 cm embedded LCD display, a push start/stop button, floating light turn indicators, LED headlamps, and LED-connected taillights among others.

Watch: MG Hector 2023: First Drive Review | HT Auto

Speaking on the launch of the new variants of the MG Hector SUV, Gaurav Gupta, Deputy Managing Director, MG Motor India, said the Hector has made a bold statement with its commanding presence and has redefined the SUV landscape with a multitude of tech features and superior driving comfort with ADAS Level 2 and Connected features. “Each subsequent variant has set new benchmarks in the segment by offering a harmonious blend of comfort, advanced technology, and ergonomic design. Using insights from our market research, industry analysis, and customer feedback, we have introduced these two latest variants, underscoring our commitment to providing an elevated driving experience, characterized by performance and power, catering to the discerning preferences of SUV enthusiasts,” he added.

Mg Hector is available in both petrol and diesel engine options. The engine choices for the SUV include a 1.5-litre turbocharged petrol motor available with both manual and CVT gearbox options and a 2.0-litre turbocharged diesel unit available with a manual gearbox.

First Published Date: 04 Mar 2024, 15:38 PM IST


Source link