Automotive Business Magazine – Q3 2026 – Digital edition - Flipbook - Page 10
FEAT U R E
OEMs
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
Accelerating
competition
→ Phil Nothard, insight director at Cox Automotive
and chair of the Vehicle Remarketing Association (VRA)
C
hinese EV brands are set
to remain a significant
and growing force, with
momentum likely to
continue. New entrants,
particularly from China, are
increasing competition through
aggressive pricing and strong
value positioning, accelerating
consumer choice, but also
putting pressure on pricing
and residual values across
the market.
In response, established
manufacturers are being
pushed to adapt more quickly,
relying on incentives, tighter
pricing strategies and fleet
channels to defend market
share and meet regulatory
targets. The result is a more
competitive, price-sensitive
market where incumbents must
balance volume and profitability,
while improving cost efficiency
and strengthening brand
differentiation as Chinese
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Q2 2026
Q3
brands continue to scale.
The latest publicly available
evidence suggests this hasn’t
so much caught the industry by
surprise as exposed a shift in
strategy.
Chinese manufacturers
were always expected to lead
on BEVs. In reality, they have
adapted quickly to market
conditions, leaning into hybrids
and even petrol where that
better suits demand, pricing
and regulation. In Europe,
for example, many Chinese
OEMs have actively increased
hybrid sales while scaling back
or rebalancing EV volumes,
partly due to weaker-thanexpected consumer demand
for BEVs and regulatory factors,
such as tariffs on imported
electric vehicles.
What has surprised some
observers is the speed and
effectiveness of this pivot.
Chinese brands are proving
that they are not single-track
‘EV-only’ players, but are highly
pragmatic, using hybrids as
a bridge technology to grow
market share quickly.
In the UK, much of their early
success – such as Jaecoo’s
rapid rise – has been driven by
plug-in hybrids rather than pure
EVs, showing a strong alignment
with what customers actually
want today. The implication
for the industry is significant:
rather than following a
linear EV transition, Chinese
OEMs are competing across
all powertrains, increasing
pressure on legacy brands
and accelerating competition
in both electrified and
traditional segments.
Regardless of powertrain
technology, the Chinese entrants
are exploiting a market gap
with lower-cost cars as costof-living pressures continue to
affect car buyers.
