Chinese disruptors set to shake up UK car market

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

FutureCar Staff Aug 14, 2023 9:57 AM PT

Chinese disruptors set to shake up UK car market

Franchised dealers in the UK are expressing confidence in the growing presence of Chinese electric vehicle (EV) brands in the country's car market. A recent poll conducted by Carwow revealed that industry insiders believe companies like BYD and GWM Ora will soon establish themselves in the new car market. While dealers expect initial progress to be modest, they anticipate the popularity of Chinese brands to increase significantly.

The survey asked Carwow's dealer partners about their predictions for the proportion of UK car sales that Chinese original equipment manufacturers (OEMs) would claim in the next 12 months. The majority (68%) of respondents stated that the new entrants would account for up to ten percent of the new car market within a year, while 25% believed the share would be between 11% and 20%.

Looking at 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 the share would be between 11% and 20%. Additionally, 21% of dealers 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.

According to the survey, 96% of dealers believe that price competitiveness will be the leading factor motivating buyers to choose Chinese brands, followed by vehicle technologies, which 35% of dealers also mentioned. The top three factors that dealers believe could deter people from buying Chinese cars are potential 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 sell new cars from Chinese brands. In response to these findings, Carwow's new CEO, John Veichmanis, emphasized the importance of Chinese brands investing in establishing a strong brand presence and being highly price competitive. He also highlighted the need for these brands to earn the trust, loyalty, and purchasing power of British consumers, which will require time, dedication, and resources, as demonstrated by Korean OEMs in the past.