Chinese disruptors set to revolutionize UK car market

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

FutureCar Staff Aug 13, 2023 11:38 PM PT

Chinese disruptors set to revolutionize UK car market

Franchised dealers in the UK are showing support for the new wave of Chinese electric vehicle (EV) brands, believing that they will have a significant impact on the country's car market in the coming years. According to a poll conducted by Carwow, industry insiders expect Chinese brands like BYD and GWM Ora to establish themselves in the new car market sooner rather than later.

The survey asked Carwow's dealer partners about their expectations for the market share of Chinese original equipment manufacturers (OEMs) in the UK. The majority of dealers (68%) predicted that Chinese brands would account for up to ten percent of the new car market within the next year. An additional 25% believed that the share could be between 11% and 20%. Looking ahead, 33% of respondents predicted that Chinese OEMs would secure 21-30% of UK new car sales within five years, while 32% believed they would claim between 11% and 20%. Another 21% expected Chinese brands to have a ten percent market share.

Only 13% of respondents expressed skepticism about the success of Chinese brands in the UK market. Price competitiveness was identified as the biggest motivator for buyers considering Chinese brands, according to 96% of dealers. This was followed by vehicle technologies, cited by 35% of dealers. The top three factors that could deter buyers from Chinese cars were concerns about build quality (75%), lack of brand familiarity (57%), and limited aftersales support (56%).

Overall, 38% of dealers said they would be either "happy" or "very happy" to sell new cars from Chinese brands. Carwow's new CEO, John Veichmanis, responded to the findings 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, loyalty, and purchasing power of British consumers, which would require time, dedication, and resources.