Dealerships predict ‘significant’ Chinese disruption
- Posted by: Alan Feldberg
- Category: News
A survey of car dealers conducted by carwow has revealed that most car dealers believe Chinese brands will secure a significant share of the new car market in the UK.
The majority (68%) of those surveyed estimated that these new entrants would account for up to 10% of the new car market within the next year, with a further 25% saying that share is likely to be 11-20%.
Meanwhile, a third said they expected Chinese brands to account for between 21% and 30% of new car sales within five years.
The vast majority (96%) said that competitive prices would drive sales of Chinese models in the UK, with 35% saying technology.
According to the survey, 42% of dealers believe Chinese models will increase customer choice and 47% say it will increase competition among manufacturers.
carwow’s new CEO, John Veichmanis, said: “We’re already partnering with a number of innovative Chinese brands and are in discussion with many more as we share dealers’ sense of their potential. However, in order to succeed, Chinese brands will need to invest in establishing and then growing a strong brand presence, as well as be highly price competitive. Securing the trust, loyalty, and purchasing power of British consumers won’t happen overnight; it will require the commitment of time, dedication and resources previously demonstrated by Korean OEMs.”