Chinese disruptors set to shake up 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. According to a poll conducted by Carwow, dealers expect Chinese brands to account for up to 10% of new car sales in the next year, and potentially 21-30% within five years. Price competitiveness is seen as the biggest motivator for buyers, while concerns around build quality, lack of brand familiarity, and limited aftersales support are seen as potential drawbacks.

FutureCar Staff Aug 16, 2023 7:15 AM PT

Chinese disruptors set to shake up 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 car market in the coming years. According to a poll conducted by Carwow, industry insiders expect brands like BYD and GWM Ora to establish a foothold in the new car market sooner rather than later.

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

Looking at the longer-term prospects, 33% of dealers predicted that Chinese OEMs would secure 21-30% of UK new car sales within five years, while 32% believed they would claim between 11-20%. Additionally, 21% of dealers expected Chinese brands to have a ten percent market share. Only 13% of respondents expressed doubts about the success of Chinese brands in the UK.

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 people from buying Chinese cars were potential 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 retail 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 securing the trust, loyalty, and purchasing power of British consumers, which will require time, dedication, and resources.