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. Dealers anticipate that Chinese OEMs will account for up to 10% of new car sales within the next year and potentially 21-30% within five years.

FutureCar Staff Aug 17, 2023 12:21 AM PT

Chinese disruptors set to shake up UK car market

Franchised dealers are optimistic about the impact of Chinese EV brands on the UK 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.

The survey asked Carwow's dealer partners about their expectations for Chinese OEMs in the UK car sales. The majority of respondents (68%) 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 Chinese brands could capture a market share of 11-20%.

Looking further into the future, 33% of dealers predicted that Chinese OEMs could secure 21-30% of UK new car sales within five years, while 32% estimated a market share of 11-20%. Additionally, 21% of respondents expected the disruptors to hold a ten percent market share.

Only 13% of dealers expressed skepticism about the success of Chinese brands in the UK.

According to the survey, 96% of dealers believed that price competitiveness would be the biggest motivator for buyers to choose Chinese brands over others. Vehicle technologies were also cited by 35% of dealers.

Dealers identified three factors that may deter consumers from buying Chinese cars: 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, stating that they are already partnering with innovative Chinese brands and are in discussions with many more. He emphasized the need for Chinese brands to invest in establishing a strong brand presence and being highly price competitive. Veichmanis also emphasized the importance of gaining the trust, loyalty, and purchasing power of British consumers, which will require time, dedication, and resources, as demonstrated by Korean OEMs.