Automotive Business Magazine – Q3 2026 – Digital edition - Flipbook - Page 11
FEATURE
OEMs
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. 10 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
headstart, 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 quick 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 everchanging technological landscape.
Consumers, meanwhile, are
increasingly spoilt for choice.
Q3 2026
AUTOMOTIVE BUSINESS
11
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