This could be giving it the edge over legacy brands that have rested on established laurels and assumed loyalty, and have failed to keep up with current buyer needs.
Paul Hollick, chair of the AFP, says: “So far, the vast majority of cars and vans from the new entrants sold in the UK are very much a value-based proposition. Generally, legacy manufacturers are still producing cars and vans that are better overall, but tend to be more expensive and less well-equipped. What the new entrants provide is more vehicles at a lower whole life cost point, but perhaps a less well-developed product.”
Hollick adds that the new entrants have promised more technology and more desirability, which could turn heads quickly from legacy brands, affecting even the most longstanding customer loyalty.
May’s Startline Used Car Tracker also showed that BYD was still the most well-known Chinese brand in the UK, mentioned by 43% of consumers and drivers. However, brand awareness of Jaecoo rose to 34% and Omoda rose by 9% to 23%, compared to 2025.
Chery launched with B and C segment vehicles, reflecting what buyers in the UK want, Wallace says. He adds that there was a preconception that Omoda, Jaecoo and Chery would launch in the UK with just electric vehicles (EVs) on offer, but in fact, the brand knew that this is not what the UK public is looking for.
Chery International had a combined 6.73% market share in April 2026, according to the Society of Motor Manufacturers and Traders (SMMT), showing that its vehicles are gaining traction in the UK market. Additionally, the Jaecoo 7 was the best-selling vehicle in March.
Wallace explains that, while Chery started in China, localisation is at the centre of its strategy. He adds that the business understands that what works in one market may not work in another.
Calum James, general manager at Farizon, explains that perceptions of Chinese OEMs have shifted, in large part due to the support of the passenger car sector.
Passenger cars can be more visible to the public, and therefore people familiarise themselves with new brands, seeing vehicles on the road and visualising themselves behind the wheel.
Borrie says: “Customer curiosity is high. Conversations often begin with price and technology, and customers are frequently impressed by both.
“Test drive conversion rates are stronger than expected for new brands, with resistance diminishing once customers are able to experience the product first-hand.”
Fleet priorities
At the backbone of the UK vehicle market is, of course, the commercial vehicle sector. In 2026 so far, fleet vehicles have accounted for 57.6% of the UK vehicle market, according to SMMT data.
It would be wise for new entrant brands to heavily consider this sector when transitioning to the UK market. Wallace emphasises that Chery International is investing in its fleet team, because it knows the value the sector brings.
Unlike consumers, fleet managers are not in the position to drop their current vehicles because something shiny and new comes along. They are far more likely to take a considered and informed approach to selecting vehicles. However, this does not mean the sector is a safe-haven for legacy brands. It might be slower, but the shift is still happening.
Hollick says: “Few fleets have suddenly committed to buying hundreds of vehicles from new entrants, but quite a few have added a few options to company car choice lists, or in the case of vans, acquired a handful to operate on a trial basis.”
There have been a very small number of brands dominating the van segment, so when a new entrant comes on the scene, it is likely to be a David and Goliath battle, according to James.
He adds: “We are very engaged with fleets, understanding what they need and want and understanding their use cases. What we want to do is encourage fleets to try something new.
“If you are a fleet decision-maker, you know what you are getting with any of these legacy brands. Coming new into the market, especially as an electric van brand, means you are mostly dealing with fleets.”
Building brand awareness and loyalty
Building brand awareness and loyalty can be difficult when there is a wide variety of brands to choose from. Fleet managers especially cannot afford to make a bad bet, as vehicle downtime is likely to cost them greatly.
James suggests that giving managers space to try the vehicles and see how they fit into the business’ needs can allow them to make a more informed decision.
He adds that it takes time to build brand awareness and trust, perhaps explaining the slower pace of change as new entrants arrive, compared to the consumer sector.
Hollick adds that fleet buyers are also less likely to be lured in by the bells and whistles: “Out of cost, technology, and long-term risk, technology is probably the least important at this point, as long as it is market competitive.
“Cost is becoming more of an acute issue in the wake of the situation in Iran, with some very real fears about where the economy could be heading amid clear falls in consumer and business confidence.”
Borrie adds: “Importantly, our sales teams are energised by the opportunity to learn about and represent new products, which is enhancing engagement on the showroom floor.”
Wallace says that consumers gaining better visibility of new vehicles on the road and in dealerships will create better brand awareness. This means that the new brand takeover is only likely to snowball as early adopters influence others to follow, and new dealerships join the fray.
Wallace says: “Viewing the cars and being able to go to a physical dealership is important, because buying a car is still a very big purchase.”
He adds that being able to speak with someone who knows the product well, in an unrushed environment, is key for a positive buying experience for consumers.
Borrie says: “The dealer model is evolving rather than being displaced. Many of the new entrants are choosing franchised dealers as the fastest and most effective route to market, leveraging existing infrastructure, expertise and customer loyalty.
“However, long-term risk is probably the biggest issue at the moment. No one wants to acquire a large number of vehicles that don’t have the manufacturer support required to ensure strong residual values and that downtime is minimised.”
Dealer models
Brands like Jaecoo, Omoda, BYD, Geely, XPENG and Chery are adopting the franchise dealer model. Chery, for example, had 40 dealerships in place before launching, as well as partnerships for its aftersales infrastructure.
With vehicle production, consumer buying habits, technology, and fleet purchasing evolving, the traditional dealership model must adapt.
Borrie says: “We are integrating Chinese brands alongside our established franchises within existing dealerships. This approach provides immediate access to high-demand, competitively priced vehicles for customers.
“From an operational perspective, these brands are relatively low-cost to introduce, particularly in terms of showroom refurbishment.
“We are seeing a shift from a brand-loyal, product-driven model to a more value-led, multi-brand environment.”
Established networks
While the hype around these new vehicles is building, many buyers – particularly fleets – will have reserves around maintenance and workshop limitations. Not having the correct network of facilities in place could affect buying behaviour; if people do not know where to go if anything goes wrong, they will be less inclined to buy.
Hollick says: “For fleets, and perhaps especially for van operators, long-term support is the biggest concern when it comes to new entrants, and it’s noteworthy that the brands committed to setting up UK dealer networks and local parts operations are the ones that have found the most success initially.”
In the LCV sector, dealerships are still a serious consideration for the new brands entering the market.
James says that the dealer model gives confidence to customers. To this end, Farizon is developing its network, which currently encompasses nine dealers.
He adds: “We are focused on franchised dealers that understand commercial vehicles, which allow fleet customers to be supported in the aftersales sector as well.
“If you blend the passenger car sector with the commercial vehicle sector too much, then this can create challenges. Prioritising dealers that can accommodate the unique needs of the fleet managers and commercial vehicles is important.”
Michael Yeates, managing director and co-founder of Carblah, says: “The brands that simplify the journey and remove friction are the ones outperforming the market. Customer experience is delivered by retailers, not OEMs – and some OEMs will be disappointed in the networks representing them.
“The strongest performers in [the Carblah Index] are proving that when customers trust you, they don’t just stay with you, they spend more with you.”
This could be where some new upstart brands fall down in the long term.
Borrie says: “The honest assessment is that the current setups are efficient for initial launch, but lack depth. Coverage is typically centralised and not yet resilient at scale, integration with the trade and independent aftermarket is limited or delayed, and stock planning tends to be reactive rather than demand-led. While the intent for long-term market growth is evident, the supporting infrastructure is not yet fully developed.”
Over the coming years, these brands will need to move in one of two directions, either building robust distribution networks, or opening access to the independent aftermarket.
Borrie adds: “Without this evolution, parts availability and customer downtime risk becoming constraints on growth.”
Pace of change
Research and development efforts by Chinese OEMs have kicked legacy brands into gear, creating competition with ‘China Time’. This is ultimately a positive for consumers, as they will get products that have been continually developed.
There is learning to be had both ways.
At the recent Keyloop Fusion conference, Effy Pan, AI and digitalisation manager at BYD, shared how the brand has been adapting to the UK climate.
BYD first arrived in 2013, focused on electric buses. Ten years later, it entered the passenger vehicle sector in the UK.
Pan says: “It’s very much about how we build trust in the UK market with a brand-new Chinese brand no one has ever heard of.”
She notes the three layers of building trust in a new market: product, institutional trust, and ownership experience. The product needs to be of good quality and safe for users.
On the point of institutional trust, Pan says: “This is where we borrow the credibility from our finance providers and from our established dealerships, from our insurers, even from our roadside assistance partners. We borrow the ‘credit’ from them and we convert the borrowed credibility into long-term loyalty through the ownership experience.”
With that comes the third layer: ownership experience. Where legacy brands have the benefit of known track records, BYD has had to provide clear proof that the customer will be supported once they have the vehicle.
Hollick says that the advent of new entrants disrupting the market has created a complex dynamic for legacy brands. There will be winners and losers as a result of this changing picture, he says: “Some legacy manufacturers are competing directly with new entrants and performing well.
“Others appear to have been caught out by the impact they have made and are running to keep up.”
Borrie adds: “Some of the legacy manufacturers are struggling to keep pace, some product development cycles remain longer, making it difficult to respond quickly to shifts in price and specification expectations.”
While novelty may have given them a head start, longevity in the UK market must be built, both in the private and commercial buying sector.
Hollick says: “The last thing fleets want is to have vehicles off the road for months on end because either the parts or technical skills needed to carry out a repair are unavailable.”
He points to the failure of Fisker Automotive – an EV brand that, after failed attempts at bringing a new era of electric driving into the US market, ultimately filed for bankruptcy – as “a warning”.
Nevertheless, brands seem to be working to avoid this by partnering with local production structures.
Hollick says: “Quite quickly, we could move to a situation where they are integrated into global car production.”
Indeed, when Nissan shut down one of its production lines to consolidate manufacturing into a single line, there was speculation that this was to allow space for a Chinese manufacturer.
This has since been confirmed by Nissan and Chery, including the possibility that Nissan will begin manufacturing Chery International UK passenger vehicles in 2027.
Overall, the introduction of new entrant brands is being met with mixed opinions, but overall it is seen as a positive change for both consumers and, if they can adapt quickly enough, the legacy manufacturers themselves.
OEMs that have been stuck in their ways are learning from the ‘new kids on the block’ about research and development, and how to maintain consumer expectations in an ever-changing technological landscape.
Consumers, meanwhile, are increasingly spoilt for choice.
