Chinese car makers have officially taken over the bestseller charts in the UK.
In September, three Chinese models made it into the top selling models list, ‘signaling a major shift in the market’s balance of power’ according to industry experts.
BYD, Jaecoo (owned by China’s largest auto exporter Chery) and MG (owned by SAIC Motors) all saw their models place in the top 10 models registered last month – a huge achievement considering how new these brands are to the UK market.
Ranking highest, Jaecoo’s 7 SUV was in fourth place, only being beaten by stalwart favourites for British buyers, the Kia Sportage, Ford Puma and Nissan Qashqai.
BYD’s Seal U came in sixth and the MG HS ranked in eighth.
The Jaecoo 7 saw 6,489 cars registered, while 5,373 BYD Seal U’s were snapped up and 5,173 MG HS models were bought. It’s the first time BYD has entered the top 10, despite its well-documented EV battle against Tesla.
Three Chinese car makers have models in September’s top 10 bestselling car models: Jaecoo’s 7 SUV (pictured) ranks in 4th, BYD’s Seal U in 6th and MG’s HS in 8th
6,489 Jaecoo 7s were sold, 5,373 BYD Seal Us and
Chinese models achieved a market share of more than 10 per cent in the last quarter new research from Schmidt Automotive Research shows, smashing through a threshold and threatening established brands.
While Jaecoo secured its place in the top five best-sellers in September, sister brands Omoda and Jaecoo together also achieved another marker, fastest-growing brand entries
After its strongest performance to date, surpassing 10,800 combined registrations, it became one of the fastest-growing automotive marques ever launched in the UK. This is only a little over a year after Omoda entered the UK market – and only eight months since the launch of Jaecoo UK.
This mirrors Schmidt Automotive’s findings that Chinese manufacturers are increasingly gaining market share across the UK at a rapid pace, with Chinese models accounting for 11.8 per cent of the UK’s new passenger car market in the most recent quarter.
Schmidt Automotive points to China’s Chery Group – representing Omoda and Jaecoo and the Chery own brand – as having the ‘most impressive gains so far this year’ despite BYD claiming most of the headlines.
The UK is now BYD’s largest international market, according to the Financial Times.
Sister brands Omoda and Jaecoo together also achieved another marker: the fastest-growing brand entry
MG sold 22,777 new vehicles in the last quarter. The HS is September’s 8th best-selling car
SAIC’s MG remained the Chinese brand market leader though, accounting for 22,777 new vehicles in the quarter (although this was down by almost 2,000 units compared to the opening quarter of the year).
When you combine the three largest Chinese brands, BYD, MG and Chery, they make up 90 per cent of all Chinese-brand models entering the UK during Q3.
Chinese makers are also leap frogging incumbent Western brands, with MG’s sales in Q3 surpassing Vauxhall’s 19,733 units, and Chery coming within 1,400 units of doing the same, Schmidt’s research finds.
BYD is close to doing the same, having sold 11,271 cars in Britain in September, up from 1,150 just a year earlier, according to SMMT data. Vauxhall registered 12,120 cars.
UK is likely being being prioritised by Chinese OEMS over EU markets when it comes to BEV deliveries, Schmidt Automotive believes because the UK isn’t impacted by the EU’s anti-subsidy tariffs placed on Chinese-made passenger cars. These range from 17 per cent (BYD) to 35.3 per cent (SAIC).
However most of Chinese manufacturer growth has come from non-BEVs.
MG’s sales in Q3 surpass Vauxhall’s 19,733 units, and Chery comes within 1,400 units of doing the same, Schmidt’s research finds
Chinese models achieved a market share of more than 10 per cent in the last quarter new research from Schmidt Automotive Research shows, threatening established marques
For legacy players the rampant growth of Chinese brands pose a problem; household names now facing tougher competition than ever before.
Geoff Hurst, Senior Director for Automotive Advisory at NTT DATA UK&I, comments that the ‘clear evidence [from September SMMT figures] of Chinese brands starting to disrupt the current market’ is due to their ‘combination of competitive pricing and improving quality’ – something that’s resonating with UK buyers ‘who are typically less brand loyal and more motivated by value’.
He says: ‘This shift should serve as a wake-up call to established manufacturers in the UK.
‘As Chinese brands build credibility and scale, the market will only get more competitive and engaging in a pricing war will not be sustainable. Premium brands need to focus on building loyalty and delivering greater value through customer experience, innovation and service in order to keep pace, or else they risk losing greater market share to these new Chinese challenger brands.’
