The_Accessor_Autumn 2025 web - Flipbook - Page 27
With diminishing pro昀椀tability in the
domestic market, China automotive
manufacturers have pushed for exports
for to key markets in the EU27 and
UK, expanding on conquests in the
Norway (128,000 cars in 2024) and
select African / Middle East markets.
Why is export so important? Foreign
exchange. Each vehicle sale realises a
higher price than the present domestic
market, and provides vital alternative
currencies.
was publicly declined. The legislation
was once again late, once again
confused and now had a three-year-ish
life span before internal combustion
engine phase out started in 2030.
The EU27 commission were not
amused, but sat up when Germany,
France and Italy pointed out the
rejection was valid.
THE CONFLUENCE AND SOME
DANGER
THE WARNINGS
The China national government has
issued many rolling 昀椀ve-year strategic
plans, expressing frustration with the
modest returns for 40 plus years of
support. Vehicles being built for export
with almost no idea of how they would
be sold. No brand. Just product.
The rebuke was to not to just 昀椀ll up
ships with vehicles but to start thinking
about why conquest markets should
buy those vehicles.
Early in discussions about EU27 tariffs
for China built battery electric vehicles,
BYD stated that even a 10% import
duty in addition to existing taxation
could be taken without raising retail
process and still turn a pro昀椀t. The EU27
manufacturers knew full well that their
margins are closer to 昀椀ve per cent,
and so could not consider taking such
a tariff without price increases for the
consumer – a sobering moment.
EU27 COMMISSION AND LAW
As China found its feet, so the
European tail pipe emission laws
stumbled through – too late, too costly,
too complex. Yet, at the same time,
the very same people making laws are
trying to ban some types pure internal
combustion engine powertrains and
promote BEVs without anywhere near
enough infrastructure.
On the one hand China has control
of mining, processing and supply of
key materials required for any sort of
electri昀椀ed powertrain, along with one
of the largest domestic markets in the
world. Yet, apart from SAIC via MG
Motor and Maxus, for many years most
of the China automotive sector was
unknown to most of Europe.
The impact of purging the internal
combustion engine powertrains, the
incomplete infrastructure roll-out to
support battery electric powertrains,
the tripling of each new model
introduction all served to slow down
the European automotive sector, and
helped China prepare to take market
share by storm.
There is a large demand in China for
basic transportation – vehicles that are
seemingly well equipped with airbags
but are closer to a quadracycle than a
car. These products are already made
in large volume, are very useful for
running around, and could be sold at a
pro昀椀t with all duties paid for less than
£10000. A lot less.
China is testing EU27 law for ultra-light
vehicles – and if successful, will send
many, many vehicles to Europe. The
EU27 commission have known about
the quadracycle problem for years, and
some of the European built vehicles
do not have front or rear end crush
structures let alone airbags. If such
inexpensive vehicles are released
on the open market the result in
congested towns and cities will make
some sense – but no sense at all for
use on higher speed routes.
Regardless of vehicle size, price cutting
will bring the economic write-off
point much closer to the 昀椀rst
registration, possibly just a couple of
years. Without radical engineering to
make repairability inherently cheaper
– something all manufacturers should
consider – there is a risk more vehicles
than ever before will be recycled not
too long after they were 昀椀rst sold.
The 昀椀rst major casualty will be the
franchised dealer. Already the main
pro昀椀t comes from used vehicle sales
and servicing, and these activities do
not need expensive brand themed
buildings. The opportunity for collision
repairers? To host vehicle sales direct
to consumers, to repair vehicles – to
take some ‘land grab’.
CONCLUSION
On top of everything else, assessors
will have to contend with new brands
with a gaggle of models which have
already been on sale for few years in
China and supporting documentation
which getting better with each new
release. The vehicles are no less
complex in any way than existing
European products. The dif昀椀culty will
be the effect on residuals which may
accelerate the number of write-offs.
As never before, adherence to the law
and application of knowledge by IAEA
members will be very important not
only for the damage assessment but
the overall repair process.
JOURNAL
New model programmes were doubled
or even trebled to address all the
electri昀椀ed and pure electric powertrain
options. For EU27 manufacturers the
burden of this activity against an
ever-tightening time scale before
taxation for producing the ‘wrong type’
of vehicle caused lasting damage. The
manufacturers had enough – Euro 7
www.iaea-online.org/news/the-assessor | AUTUMN 2025 | THE ASSESSORS JOURNAL
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