Chinese disruptors set to shake up UK car market

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【Summary】Franchised dealers believe that Chinese EV brands will have a significant impact on the UK car market. A poll of retailers found that the majority expect Chinese OEMs to hold up to 10% of the market within a year, and up to 30% within five years. Price competitiveness is seen as the main motivator for buyers, while concerns about build quality, brand familiarity, and aftersales support are the main deterrents. Overall, 38% of dealers would be happy to retail Chinese brands.

FutureCar Staff Aug 15, 2023 5:07 PM PT

Chinese disruptors set to shake up UK car market

Franchised dealers in the UK are showing support for the new wave of Chinese EV brands and expect them to make a significant impact on the car market in the coming years. A recent poll conducted by Carwow revealed that industry insiders believe brands like BYD and GWM Ora will establish themselves in the new car market sooner rather than later. While dealers anticipate modest progress initially, they believe that the popularity of Chinese brands will continue to rise.

The survey asked Carwow's dealer partners about the proportion of UK car sales they expect Chinese OEMs to capture in the next 12 months. The majority (68%) of respondents predicted that the new entrants would account for up to ten percent of the new car market within the next year. Another 25% believed that the share could be between 11% and 20%.

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

Price competitiveness was identified as the primary motivator for buyers to consider Chinese brands, according to 96% of dealers. This factor significantly outweighed vehicle technologies, which 35% of dealers also mentioned. The top three factors likely to deter people from buying Chinese cars were concerns about build quality (75%), lack of brand familiarity (57%), and limited aftersales support (56%).

Overall, 38% of dealers stated that 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 potential of Chinese brands and the need for them 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.