7:15 am, September 16, 2026
The car industry is facing a ‘survival of the fittest’ battle as Chinese newcomers pile pressure on established manufacturers.
That’s the view of Aion UK boss Jon Wakefield, who believes the increasingly competitive market has become ‘Darwinian’ as manufacturers fight for their place in a rapidly changing industry.
Speaking exclusively to Car Dealer at the launch of the brand’s new UT electric supermini, Wakefield said the pace of change was forcing both traditional manufacturers and new entrants to adapt quickly if they wanted to survive.
‘To be blunt, it’s Darwinian, isn’t it? It’s survival of the fittest,’ he said.
Wakefield was speaking in the same week that JLR announced 4,000 job losses as the company seeks to save £1.7bn, and just days after it was revealed Volkswagen intends to axe a further 50,000 jobs, on top of the 50,000 already announced.
Meanwhile, Chinese cars are flooding into European markets and manufacturers are looking at building factories in the region to service increasing demand.
Wakefield said the situation was ‘as brutal as anything’ he had witnessed during his career. But he remains convinced that cars themselves will continue to play a major role in society.
‘First of all, the overarching good news is I’m quite positive that the motor car has a place in society,’ he said.
‘Not just from a transport, from a liberation perspective. Cars are great. So there will always be a car market.’
Manufacturers will have to adapt
Wakefield believes the bigger question is which companies will be able to adapt quickly enough to remain competitive.
He said success would ultimately come down to manufacturers being able to establish a competitive position and organise themselves flexibly enough to respond to changing global markets.
The challenge is particularly acute as Chinese manufacturers accelerate product development and launch new models at a pace many established European brands have traditionally struggled to match.
Wakefield believes that ability to move quickly is one of the biggest strengths Chinese manufacturers currently possess.
‘The mindset is that pace and being able to iterate and move forward quickly,’ he said.
He also questioned why established manufacturers which have spent years working alongside Chinese companies through joint ventures had not always reacted sooner to the threat.
‘Some of the European brands have worked in those JVs with the Chinese – Why didn’t you spot it? You weren’t just bystanders. You were in it.’
UK dealers have proved their resilience
Despite the pressure facing manufacturers, Wakefield believes the UK’s franchised car dealers have repeatedly demonstrated their ability to adapt.
He pointed to dealer groups which have survived numerous economic cycles, changes in manufacturer representation and upheaval in the wider industry.
‘There are some tremendously good dealers out there in the UK,’ he said, adding that they have ‘adapted’ and have ‘remained resilient’.
Aion itself is among the latest Chinese newcomers attempting to establish a foothold in the UK, with parent company GAC taking a deliberately measured approach to growth.
Wakefield told Car Dealer that the company does not intend to chase huge sales volumes ‘by hook or by crook’, with protecting residual values among its priorities as it expands.
He believes there is still plenty to play for as traditional manufacturers and newcomers compete for buyers – and accepts that not everybody will ultimately succeed.