UK dealers reveal the Chinese car brands ‘most likely’ to succeed

Dealers have revealed which Chinese car brands they think will most likely make an impact in the UK market.

Faced with an intensely competitive home market, with more than 200 car and van manufacturers jostling for supremacy, Chinese brands are keenly eyeing Europe and the UK as an important growth target. 

Asked which new entrants to the UK car market are most likely to succeed, dealers ranked the chances of electric vehicle (EV) manufacturer Xpeng the highest (36%).

It was followed by Omoda (34%), BYD (31%), Lynk and Co (24%) and Nio (24%), according to June’s Startline Used Car Tracker.

Other new entrants named by dealers include Jaecoo (19%), GWM ORA (17%), Zeekr (12%) and HiPhi (5%).

Paul Burgess, CEO at Startline Motor Finance, said: “It can seem as though a new Chinese EV entrant to the UK car market is announced every week, but our research shows that dealers are starting to build up a picture of which they think are the most credible.

“Xpeng is an interesting result at the top of the table. Although they have just launched in Germany, they are not expected to arrive in the UK later this year, while other brands such as BYD and GWM ORA already have cars on UK roads. However, dealers obviously see some potential there.”

Writing in his regular column for Fleet News, chair of the Association of Fleet Professionals (AFP), Paul Hollick, said: “Perhaps, the most sensible move is to look closely at the investment that the manufacturer is making in the UK market.

“At the AFP’s annual conference, both BYD and Omada/Jaecoo presented on their plans in detail. https://www.fleetnews.co.uk/news/tariffs-on-ev-imports-not-worrying-chinese-ev-manufacturers

“They appear to be here for the long haul by creating dealer networks, building parts hubs, working with Thatcham, training technicians and more. These are all highly reassuring signs.”

However, he warned: “Last year, a report in the Financial Times predicted that out of a current 50 Chinese EV manufacturers, only 10-12 would still be around at the end of this decade.

“Consolidation will mean that some potentially weaker brands are saved but there will also inevitably be bankruptcies.”

Burgess says that all of the top three in its results are adopting a traditional franchise model for their sales and support networks.

“What will be interesting over the medium term, of course, is which of these new entrants are able to not just gain a foothold in the UK market but maintain a presence over time,” he added.