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Before you sign a China EV distribution deal, check these five things

Before you sign a China EV distribution deal, check these five things

2026-09-17

The export math gets all the attention — FOB, freight, duty, landed cost. The thing that actually kills a distribution business is what happens after the keys change hands. Three data points from the last two months should be on every importer's desk: Thailand logged 1,348 EV complaints in 2024-2026 with 52% about after-sales; German partners reported warranty reimbursements stuck over six months behind a nine-step approval flow; and a major Dutch insurer, Univé, began restricting cover for China brands without a local service system. BYD, MG and Lynk were unaffected — because they built local service.

So run this five-point check before you sign:

1. Reimbursement SLA. How many days does the factory actually pay your workshop for warranty work? Get it in writing as a maximum — 30 days, not "soon." The Germany case shows what happens without it.

2. Parts front-stock. Does the OEM run a regional parts warehouse near you, or does every caliper sail from China? As of September 2026 most smaller exporters still have no overseas pre-stock. Ask for a stocked list of fast-moving SKUs.

3. Local technical support. Is there a local team and training, or is the diagnostic system Chinese-only? (Russia dealers had to fly in technicians.) Confirm multilingual diagnostics and a trainer visit in month one.

4. Price-stability clause. Post-sale price cuts destroy your used-car book and customer trust. Negotiate a floor or a volume rebate so the factory can't undercut you after delivery.

5. Insurance acceptance. Confirm local insurers will actually cover the brand in your market. If Univé-style restrictions apply, your customers cannot finance or insure the car — deal over.

A cheap landed cost means nothing if the car sits in a workshop for six weeks. Service is the moat now, not the price.

DM me your target market and I'll send a one-page distributor due-diligence checklist tuned to your region's rules and insurers.