Chinese disruptors target UK new car market

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【Summary】Franchised dealers in the UK are expecting Chinese EV brands like BYD and GWM Ora to make a significant impact on the new car market. A survey found that 68% of dealers believe Chinese brands will account for up to 10% of the market in the next year, while 33% predict a share of 21-30% within five years.

FutureCar Staff Aug 16, 2023 10:15 AM PT

Chinese disruptors target UK new car market

Franchised dealers in the UK are showing support for the new wave of Chinese electric vehicle (EV) brands, expecting them to have a significant impact on the 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. While dealers anticipate modest progress initially, they believe the popularity of Chinese brands will continue to rise.

The survey asked Carwow's dealer partners about their expectations for Chinese original equipment manufacturers (OEMs) in the UK car market 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. Another 25% believed their share could be between 11-20 percent.

Looking at longer-term prospects, 33% of respondents predicted that Chinese OEMs would secure 21-30 percent of UK new car sales within five years, while 32% expected them to claim between 11-20 percent. Additionally, 21% of dealers anticipated a ten percent market share for these disruptors. Only 13% of respondents expressed doubt about the success of Chinese brands in the UK.

According to the survey, price competitiveness was identified as the main motivator for buyers turning to Chinese brands by 96% of dealers. Vehicle technologies were also cited by 35% of dealers. On the other hand, the top three factors that were likely to deter people from buying Chinese cars were 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 retail new cars from Chinese brands. Carwow's new CEO, John Veichmanis, responded to the findings by emphasizing the potential of Chinese brands and the need for them to invest in establishing a strong brand presence and maintaining competitive pricing. He also highlighted the importance of gaining the trust, loyalty, and purchasing power of British consumers, which would require dedication and resources similar to what Korean OEMs have demonstrated in the past.