Allianz analysis: European car manufacturers lose competitive advantage in repair costs

According to an analysis by Allianz, European car manufacturers are quickly losing their previous advantage in repair costs in competition with Chinese manufacturers. In motor vehicle insurance, the lead of domestic vehicles has shrunk in lower model classes. In 2024, European manufacturers were still three type classes better than Chinese when it came to insurance classification, and in 2026 it would only be one, said Christian Sahr, head of the Allianz Center for Technology (AZT) in Ismaning.

The Allianz Center for Technology has been one of the prominent addresses in accident research and vehicle safety in the automotive industry for decades. The type classes are determined by the General Association of German Insurers (GDV). Expensive cars are usually classified in higher comprehensive type classes.

European car industry is slowing down

On average, the Chinese manufacturers have become 1.5 type classes better, the European 0.5 type classes worse, said Sahr. »A first trend can be clearly seen: Chinese manufacturers are learning quickly. The second very negative trend is that European manufacturers are getting worse on average.«

The basis for the evaluation was the classification of the car models that have come onto the market in Germany since 2024: there were 174 in 2024, 115 in 2025, and 35 in the first half of this year.

"European manufacturers seem to be attaching increasingly less importance to the ease of repair of their vehicles," said the engineer. “This can be expensive for vehicle owners.” The overall costs of a vehicle therefore increase as the car ages. Sahr cannot explain why European manufacturers would give up a competitive advantage that is becoming increasingly important for consumers.

Big Chinese brands are getting better

If a manufacturer is new to the market, does not have a workshop network and spare parts are not available, insurance costs also increase due to longer repair times and more expensive spare parts, said the AZT boss. This was initially the case with some Chinese vehicles. The situation has improved significantly in recent years, especially among the large manufacturers who will hold their own on the market in the long term.

The market leader among Chinese manufacturers in Germany is BYD. With 36,748 new registrations in the first eight months, the company, founded in 1995, has now left competitors such as Tesla, Citroën and Mazda behind.

However, buying a Chinese car remains a risk for another reason: the survival of many manufacturers is uncertain. There are currently over 100 car brands in China, many of which are in the red or only making very small profits. Sales of electric cars are increasing in the Chinese home market. But overall registration numbers have collapsed - a key reason for the export offensive.