Rising brands: new entrants are winning hearts, minds and wallets

The automotive landscape is witnessing a significant shift as Chinese car manufacturers make inroads into the UK market and increase their market share. Our latest consumer research reveals a steady increase in openness to Chinese automotive brands, with 32% of UK consumers now willing to consider a Chinese manufactured vehicle for their next purchase - up from 27% in late 2023. This upward trajectory signals important implications for retailers and legacy brands alike.

Changing consumer perceptions

Our data indicates a gradual erosion of traditional barriers to Chinese brand adoption. Build quality concerns, historically a significant hurdle, have notably decreased from 36% to 29% over the past two years. This shift suggests that Chinese brands' investments in quality and manufacturing excellence are beginning to resonate with UK consumers.

Perhaps most telling is the value proposition these brands present. More than a quarter of consumers (28%) recognise Chinese cars as offering better value for money, while 18% acknowledge more competitive pricing and promotional offers. In terms of actual performance on Carwow, configurations for BYD are up 165% year-on-year. OMODA meanwhile, despite being active on Carwow for a shorter time than BYD, sits just 1% behind BYD for configuration volumes. 

The EV advantage

Chinese brands are particularly well-positioned in the EV space, already dominating with c.60% of global EV sales. BYD for example, invested in lithium mining in 2011, allowing it to reach economies of scale faster and reduce manufacturing costs. It takes 11 years to build a lithium mine, and, given that the battery of an EV can account for up to 40% of the cost, securing a stable supply of lithium is crucial for competitive pricing.

Our research shows growing recognition of Chinese brands' EV capabilities, with 16% of consumers citing "more choice of EV models" as a benefit of Chinese brands - a notable increase from 11% in 2022. Additionally, 13% of consumers acknowledge superior technology in Chinese vehicles, up from 10% previously.

Strategic implications for the UK market

For legacy brands and retailers, this trend presents both challenges and opportunities. Our data suggests that consumer hesitancy isn't primarily about product quality or aesthetics - instead, political considerations (36%), unfamiliarity with the brands (25%) and after-sales support (25%) remain the biggest barriers to adoption. This creates a clear strategic imperative. Retailers representing Chinese brands should focus on building brand awareness and trust through enhanced after-sales support. 

The road ahead

The research indicates a clear trajectory. Chinese brands are gaining acceptance in the UK market, particularly among value-conscious consumers and those considering EVs. While challenges remain, a consistent decline in consumer concerns as well as a sustained increase in perceived benefits are strong signals that Chinese brands’ investment in the UK is paying off. As the Korean marques will attest, winning over the UK consumer takes time and accessible pricing is necessary to secure a foothold.

Get more industry insight in our latest Carwow Insider here.