VISIT OUR OTHERS EXCLUSIVE PORTALS
Mobility Portal, Spain
Date: January 13, 2025
Inés Platini
By Inés Platini
Spain
Spain flag

Crisis in after-sales: The downside of the boom in Chinese electric cars in Spain

The market share of electric cars from Chinese manufacturers ended 2024 with nearly 5%, demonstrating that they are gaining increasing ground in Spain, albeit not without challenges. What is their Achilles' heel?
Crisis in after-sales: The downside of the boom in Chinese electric cars in Spain

The growth of the Chinese electric car market in the last year has been remarkable, but experts identify “a particular situation” that could be limiting its development: after-sales service.

Pedro García, International Guarantees Auditor.

Pedro García, International Guarantee Auditor for Cupra SEAT, assures Mobility Portal España: “This aspect is poorly managed and that generates distrust among consumers.” 

Why? He explains that people often ask themselves, “What will happen if they buy an affordable Chinese vehicle and something goes wrong?” questioning who will handle the repairs.

In this regard, he mentions that some consumers have waited up to four months to resolve a software problem or to receive a replacement part that never arrives. 

“This has a negative impact on the perception of these cars,” he says.

As an example, Javier García Butenegro, IRD and automobile expert, describes to Mobility Portal España a situation experienced by a neighbor of his.

He bought an MG3 Hybrid and, 15 days later, suffered a rear-end collision that caused damage to the bumper and one of the taillights.

“The vehicle has not been repaired since mid-November,” he says.

According to García Butenegro, the models that have presented and continue to present the most problems in after-sales service, especially with regard to the supply of bodywork spare parts, are those of the MG brand.

The reason? “Its growth has been very rapid,” he says.

He clarifies: “Like any company that enters a new market, it encounters inconveniences and problems, but this company’s rapid expansion has perhaps been greater than expected.”

Added to this equation are BYD and OMODA/Jaecoo, which have opened spare parts logistics centres to try to supply the market as quickly as possible.

However, OMODA confirmed to Mobility Portal España: “For now we do not have this problem because we have developed a specific strategy for after-sales.”

What numbers did Chinese eCars leave in 2024?

Sales of vehicles from Chinese manufacturers experienced a significant increase during 2024 in Spain, reaching approximately 4.89% of the total market share.

The expert highlights that, in total, 49,690 vehicles have been sold, including brands such as MG, Omoda (Chery), BYD, Lynk&Co (Geely) and Jaecoo (Chery), all of which exceeded one thousand units delivered.

“Electric vehicles produced in the Asian country but from Western manufacturers have also been strong, with the Tesla Model 3 standing out , managing to register 11,043 cars, but there are more cases,” he says.

What other challenges do Chinese companies face?

The Chinese would not be the first to face challenges in the after-sales field.

According to Pablo Torralbo López, co-founder of Mobility Data Hub, to Mobility Portal España, this situation already occurred with the initial arrival of the Japanese manufacturers and, later, with the Koreans.

Pablo Torralbo López, co-founder of Mobility Data Hub.

“As expected, Chinese companies are facing three major challenges,” he says.

The insufficient distribution network is one of the main challenges mentioned by the expert. 

“Although they are expanding at a good pace, it is clear that creating and consolidating a solid, well-prepared network with adequate technical training and in-depth knowledge of the product takes time,” he stressed.

Another problem identified by Torralbo is the availability of parts, spare parts and accessories

“Both end customers and dealers have reported problems with parts availability, which not only affects routine repairs, but also warranty management,” he notes.

In the case of MG, demands exceeded initial logistics capacity, while BYD and Omoda have tried to get ahead with specific centres in Spain. 

To improve this situation, brands such as MG, Dongfeng and BYD have opened warehouses in Spain with the aim of guaranteeing reasonable delivery times.

This is helping to optimize the efficiency of after-sales service,” says the expert.

And not only that.

The perception of quality, reliability and service represents the third challenge, as a consequence of the first two challenges mentioned.

“The lack of training, combined with the scarcity of clear and accessible information, creates doubts among consumers, which could deter potential buyers,” he says. 

How is this intended to be countered?

According to Torralbo, brands are betting on strategies such as competitive prices and extended warranties to attract and retain customers.

Followers
18.652
Separator Single Post

Leave a Reply

Your email address will not be published. Required fields are marked *