Chinese disruptors impact UK car market

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【Summary】Franchised dealers in the UK believe that Chinese EV brands like BYD and GWM Ora will have a significant impact on the new car market. A poll conducted by Carwow found that dealers expect Chinese brands to capture up to 20% of the market within the next year, and 30% within five years. Price competitiveness is seen as the biggest motivator for buyers, while concerns over build quality and limited aftersales support are seen as potential deterrents.

FutureCar Staff Aug 15, 2023 10:10 AM PT

Franchised dealers in the UK are expressing confidence in the future success of Chinese electric vehicle (EV) brands in the country's car market. A recent poll conducted by Carwow revealed that industry insiders believe companies like BYD and GWM Ora will establish a strong presence in the new car market in the near future. While dealers expect modest progress initially, they anticipate that the popularity of Chinese brands will continue to grow.

The survey asked Carwow's dealer partners about their expectations for Chinese original equipment manufacturers (OEMs) in the UK car sales market. The majority of respondents (68%) predicted that these new entrants would capture up to 10% of the new car market within the next year. An additional 25% believed that Chinese brands could achieve a market share of 11-20%. When asked about longer-term prospects, 33% of dealers predicted a market share of 21-30% within five years, while 32% expected a share of 11-20%. Another 21% anticipated a 10% market share. Only 13% of respondents expressed doubt about the success of Chinese brands in the UK.

According to the survey, 96% of dealers believe that price competitiveness will be the biggest motivator for buyers considering Chinese brands, followed by vehicle technologies, cited by 35% of dealers. Dealers identified three factors that could deter buyers from Chinese cars: concerns about build quality (75%), lack of brand familiarity (57%), and limited aftersales support (56%). Overall, 38% of dealers indicated that they would be "happy" or "very happy" to sell new cars from Chinese brands.

In response to the survey's findings, Carwow's CEO, John Veichmanis, stated that the company is already partnering with several innovative Chinese brands and is in discussions with many more. He emphasized that for Chinese brands to succeed in the UK, they need to invest in establishing a strong brand presence and be highly price competitive. Veichmanis also highlighted the importance of gaining the trust, loyalty, and purchasing power of British consumers, which will require time, dedication, and resources, as demonstrated by Korean OEMs in the past.