Chinese car brands Omoda and Jaecoo have begun offering a seven-year warranty with no mileage limit on their vehicles, including seven years of roadside assistance, according to Supercar Blondie.
The move has surprised European carmakers already facing stiff competition from Chinese manufacturers, the outlet reported.
Why Chinese brands are raising the stakes
Chinese car companies are stoking concern in the West as they push to establish dominance in the car market, particularly in the electric vehicle segment, according to the report. Manufacturers from China intend to compete with European brands not only on low prices and advanced technology but also on long warranties, it said.
Many carmakers offer warranties lasting up to seven years or until a vehicle reaches a set mileage, the outlet noted. Omoda and Jaecoo, however, chose not to cap the mileage at all.
How rivals compare
Other manufacturers offer more modest terms, according to the report. Tesla provides a four-year warranty capped at 50,000 miles (80,000 km). Swedish brand Polestar offers three years of cover, while Volkswagen's most affordable models come with a three-year warranty limited to 60,000 miles (96,500 km).
Omoda and Jaecoo are both relatively new Chinese-owned car brands that have been expanding into European markets in recent years, part of a broader wave of Chinese manufacturers targeting the continent's car buyers.
A German dealer's collapse
The report also recalled the recent bankruptcy of Wahl Group, the world's oldest BMW dealer, after it began importing Chinese cars. In the past two years, Wahl Group's management sought to expand its brand portfolio, adding 11 marques, most from the Stellantis group and the rest Chinese.
In interviews with German media, Wahl Group representatives said margins on Chinese cars were lower and that Chinese manufacturers expected European dealers to cover all logistics, storage and financing costs. Other dealers have made similar complaints, accusing Chinese manufacturers of poor payment discipline and saying it is very difficult to build long-term partnerships with them.
