A prominent Chinese manufacturer has announced a new partnership which will allow UK customers to easily access insurance on its models after concerns that they would be "uninsurable".
Chery, who owns brands Omoda and Jaecoo, explained that the agreement would bridge the gap between purchasing a vehicle and looking after it when things go wrong.
The car insurance offering comes after reports that Chinese electric vehicle models were harder to insure due to their mechanics and a lack of resources to easily repair them.
In a bid to prevent this from happening and keep UK customers interested, Chery has joined forces with Berkshire-based Thatcham Research.
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Chery plans to launch popular brands in the UK this year, including Jaecoo
REUTERSBen Townsend, head of automotive at Thatcham Research said: “The goal is to ensure that Chery vehicles coming off the production line are as insurable as they are innovative, bridging the gap between cutting-edge design and practicality in maintenance and repair.
“We are thrilled to collaborate with Chery to bake repairability into the DNA of vehicle design from the get-go.
“By doing so, Chery is signalling its intent to anticipate the needs and challenges of the future and address them today, creating a better total cost of ownership experience for its drivers.”
Chery recently was seen eyeing the UK to be its European hub for its Omoda and Jaecoo which will launch in the UK later this year.
Chen Chunqing, CEO of Omoda and Jaecoo UK, explained that the company consider this partnership a key factor in underlining its commitment to Europe and the UK.
The car manufacturer said it wanted to make sure customers have support throughout their ownership of the cars.
Victor Zhang, UK country manager at Chery, said: “Localisation is something the industry must be doing in the future – it is of great importance.
“The UK has a lot of potential and it has a unique positioning, especially with its universities linked to the car industry.
“The UK Government is showing a positive attitude towards foreign investment, and the UK is a good possibility for us. We are taking this very seriously.”
Thatcham Research’s chief commercial officer Miller Crockart stated that Chinese vehicle manufacturers are determined to cover every angle to succeed in the international market.
This requires a laser focus on the total cost of ownership proposition, as well as the production of high-quality electric vehicles that appeal to the new generation of drivers, he added.
The Omoda 5 is expected to be priced from £24,000, while the E5 is predicted to come in at under £34,000, near the average price of an electric vehicle in the UK.
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Chinese car brand pairs up with UK insurer
GETTYMeanwhile, Jaecoo is set to launch its first model this September with the Jaecoo 7. The SUV will feature a 1.6-litre petrol engine and is estimated to be priced at around £35,000.