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 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 new car sales within the next year. In the longer term, 33% of dealers believe Chinese brands could secure 21-30% of UK new car sales within five years.

FutureCar Staff Aug 14, 2023 4:58 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 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 establish themselves 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 sales. The majority of respondents (68%) believe that these new entrants will account for up to ten percent of the new car market within the next year, while 25% think the share could be between 11% and 20%. Looking further into the future, 33% of dealers predict that Chinese OEMs will secure 21-30% of UK new car sales within five years, while another 32% believe they will claim between 11% and 20%.

However, not all dealers are convinced of the success of Chinese brands in the UK. Only 13% of respondents said they do not think Chinese brands will be successful. The survey found that price competitiveness is likely to be the biggest motivator for buyers turning to Chinese brands, according to 96% of dealers. Vehicle technologies were also cited by 35% of dealers.

Dealers identified three factors that could put people off buying Chinese cars: concerns about build quality (75%), lack of brand familiarity (57%), and limited aftersales support (56%). Despite these concerns, 38% of dealers said they would be "happy" or "very happy" to retail new cars from Chinese brands.

John Veichmanis, Carwow's new CEO, responded to the findings by stating that they are already partnering with innovative Chinese brands and are in discussions with many more. He emphasized that Chinese brands would need to invest in establishing and growing a strong brand presence and be highly price competitive in order to succeed in the UK market. Veichmanis also highlighted the importance of securing the trust, loyalty, and purchasing power of British consumers, which would require time, dedication, and resources, as demonstrated by Korean OEMs in the past.