Chinese disruptors set to shake up UK new car market

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【Summary】Franchised dealers in the UK are optimistic about the impact of Chinese EV brands in the car market. A poll conducted by Carwow found that dealers anticipate Chinese brands like BYD and GWM Ora to establish a significant presence in the market. The majority of respondents believe that Chinese OEMs will account for up to 10% of new car sales within the next year, with some predicting a market share of 11-20% in the longer term.

FutureCar Staff Aug 17, 2023 10:24 AM PT

Chinese disruptors set to shake up UK new car market

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 car market in the coming years. A recent poll conducted by Carwow among retailers revealed that industry insiders expect Chinese brands like BYD and GWM Ora to establish a strong presence in the new car market sooner rather than later.

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

Looking further into the future, when asked about longer-term prospects, 33% of dealers predicted that Chinese OEMs would secure 21-30% of UK new car sales within five years, while another 32% estimated a market share of 11-20%. A fifth of respondents (21%) expected Chinese brands to have a ten percent market share.

Only 13% of survey participants expressed doubt about the success of Chinese brands in the UK market. According to the dealers, price competitiveness was identified as the biggest motivator for buyers to choose Chinese brands, with 96% of respondents agreeing. Vehicle technologies were also cited by 35% of dealers.

When asked about factors that could deter people from buying Chinese cars, dealers identified potential concerns around build quality (75%), lack of brand familiarity (57%), and limited aftersales support (56%) as the top three reasons. However, despite these reservations, 38% of dealers stated that 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, emphasized the potential of Chinese brands and the need for them to invest in establishing a strong brand presence and being highly price competitive. He noted that gaining the trust, loyalty, and purchasing power of British consumers would require time, dedication, and resources, similar to what Korean OEMs have demonstrated in the past.