Chinese disruptors make big impact on UK car market

Home > Industry Analysis > Content

【Summary】Franchised dealers in the UK believe that Chinese EV brands will have a significant impact on the new car market. A poll conducted by Carwow found that dealers expect Chinese brands like BYD and GWM Ora to establish a foothold in the market, with 68% predicting they will account for up to 10% of sales in the next year. In the longer term, 33% of dealers believe Chinese brands could secure 21-30% of the market within five years.

FutureCar Staff Aug 15, 2023 7:26 AM PT

Chinese disruptors make big impact on UK car market

Franchised dealers in the UK are showing support for the new wave of Chinese electric vehicle (EV) brands, predicting that they will have a significant impact on the car market in the coming years. According to a poll conducted by Carwow, industry insiders believe that brands like BYD and GWM Ora will soon establish a foothold in the new car market.

The survey asked Carwow's dealer partners about their expectations for Chinese original equipment manufacturers (OEMs) in the UK. The majority (68%) of respondents predicted that these new entrants would account for up to ten percent of the new car market within the next year. Additionally, 25% of dealers believed that Chinese OEMs could capture a market share of 11-20%.

Looking at longer-term prospects, a third (33%) of dealers anticipated that Chinese OEMs would secure 21-30% of UK new car sales within five years. Another 32% predicted a market share of 11-20%. Furthermore, 21% of dealers expected these disruptors to have a ten percent market share.

Only 13% of survey respondents expressed skepticism about the success of Chinese brands in the UK market. The majority of dealers (96%) believed that price competitiveness would be the biggest motivator for buyers to choose Chinese brands, followed by vehicle technologies (35%).

When asked about factors that might discourage people from buying Chinese cars, dealers identified potential concerns around build quality (75%), lack of brand familiarity (57%), and limited aftersales support (56%) as the top three deterrents.

Overall, 38% of dealers stated that they would be "happy" or "very happy" to sell new cars from Chinese brands. Carwow's CEO, John Veichmanis, responded to the survey by emphasizing the need for Chinese brands to invest in establishing a strong brand presence and being highly price competitive. He also highlighted the importance of gaining the trust and loyalty of British consumers, which will require time, dedication, and resources similar to what Korean OEMs have demonstrated in the past.