Chinese cars have an advantage when it comes to repair costs: the European lead is shrinking

Dusseldorf. According to an analysis by the insurance company Allianz, Europe's car manufacturers are quickly losing their previous advantage of cheaper repair costs in competition with Chinese competitors. In motor vehicle insurance, the lead of domestic vehicles when classified into lower type classes has shrunk. “In 2024, the European manufacturers were still three type classes better than the Chinese manufacturers in terms of insurance classification,” said Christian Sahr, head of the Allianz Center for Technology (AZT) in Ismaning. “And in 2026 it will only be one type class.”

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.

“The Chinese manufacturers have improved on average by 1.5 type classes, while the European manufacturers have become 0.5 type classes worse,” says 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 total cost of a vehicle therefore increases as the car ages. “Many customers are experiencing this increase in costs and are often unpleasantly surprised by it if they haven’t looked into it before.”

If a manufacturer is new to the market, does not have a workshop network and spare parts are not available, insurance costs will of course also increase due to longer repair times and more expensive spare parts, said the AZT boss. "In the beginning, this was definitely the case with some Chinese vehicles. But this scenario has also improved significantly in recent years, especially for the large players who will continue to assert themselves on the market in the long term."

Sahr appealed to domestic manufacturers to pay more attention to repair costs, both in the interests of their customers and in their own interests. “We see the affordability of mobility in danger and for this reason alone we advocate that the type class as an instrument should be brought more into the foreground again.”

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.

In April, the head of the state-owned company Changan, Hua Zhurong, made a calculation that caused waves in the trade press: According to this, a Chinese car manufacturer would have to sell at least 3 to 3.5 million vehicles a year by 2030 in order to survive. So far, the two manufacturers Leapmotor and X-Peng, which are also represented in Germany, are well below this mark.