Chinese disruptors set to shake up UK car market

author: FutureCar Staff    

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. A recent poll conducted by Carwow, a car retail platform, revealed that industry insiders expect Chinese brands like BYD and GWM Ora to establish a foothold in the new car market sooner rather than later.

The analysis of the data from the poll showed that dealers are initially expecting modest progress, but they believe that the popularity of Chinese brands will continue to rise. Carwow asked its dealer partners about their predictions for the proportion of UK car sales that Chinese original equipment manufacturers (OEMs) would capture in the next 12 months. The majority of respondents, 68%, said that the new entrants would account for up to ten per cent of the new car market within the next year. Another 25% of respondents believed that the Chinese brands would capture a market share of 11-20%.

When asked about the longer-term prospects for Chinese OEMs, 33% of dealers predicted that they would secure a market share of 21-30% of UK new car sales within five years. Another 32% of dealers believed that the Chinese brands would claim between 11-20% of the market. Additionally, 21% of respondents expected the disruptors to have a ten per cent market share. Only 13% of the dealers surveyed expressed doubt about the success of Chinese brands in the UK.

According to 96% of the dealers, price competitiveness is likely to be the biggest motivator for buyers turning to Chinese brands, far ahead of vehicle technologies, which 35% of dealers also cited. The top three factors that dealers believe would deter people from buying Chinese cars are potential concerns around 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. In response to the survey findings, Carwow's new CEO, John Veichmanis, stated that they are already partnering with several innovative Chinese brands and are in discussions with many more, as they share the dealers' sense of the potential of these brands. However, Veichmanis emphasized that for Chinese brands to succeed in the UK, they would need to invest in establishing and growing a strong brand presence, as well as being highly price competitive. He added that gaining the trust, loyalty, and purchasing power of British consumers will require time, dedication, and resources, similar to what Korean OEMs have demonstrated in the past.

FutureCar Staff