11:22 am, February 6, 2023
An influx of new Chinese EV brands have been backed to kickstart the UK’s stuttering new car market by a leading industry expert.
Alex Wright, MD of Shoreham Vehicle Auctions says that OEMS risk losing valuable sales and market share if they do not increase their production capacity.
Wright says that incoming Chinese outfits, like BYD, are bringing ‘a very strong proposition’ that could threaten the established brands’ positions.
He also name-checked MG as a firm with the potential to upset the applecart when it comes to market share in the UK.
The brand reported a 66.8 per cent sales increase in the UK in 2022 to 51,050 cars, placing it above the likes of Skoda, Citroen, and Honda.
It comes as Cox Automotive predicted a strong 2023 for UK car production, following record lows in 2022.
Wright said: ‘OEMS will have to decide whether they want to protect their market share and compete with the new Chinese brands that have a very strong proposition and product availability.
‘When supply improves it will reignite new car sales as well as ease the pressure on the used market.
‘Currently, consumers have the option of buying a brand new fully warranted new car on competitive finance or a three-to-four-year-old used car for the same price outside the manufacturer’s warranty.
‘It reminds me of when Daewoo launched in the UK and its new prices were more in tune with used cars.
‘OEMs have increased new car prices to help get round this anomaly, but due to inflation used prices are likely to remain high for the foreseeable future.
‘The same type of used cars we sold at auction in 2018 for £9,000 are now selling for £18,000 which gives you some idea of how the market has moved in recent years.’
Last month, Chinese brand BYD – which stands for ‘Build Your Dream’ – appointed its first franchise dealer partners in the UK.
In January, Stellantis boss Carlos Tavares said firms were facing a ‘terrible fight’ amidst the influx of new Chinese outfits.
Main image: Alex Wright, MD of Shoreham Vehicle Auctions
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