Automotive Business Magazine – Q3 2026 – Digital edition - Flipbook - Page 7
FEATURE
OEMs
standard, has given these
brands significant traction.
They are attracting new EV
adopters while also accelerating
switching behaviour from
traditional brands within their
ICE offerings.
“Customers are more open
than ever to considering
unfamiliar brands.”
Ian Wallace, head of PR
at Chery International,
says: “Chery wanted to
develop some export brands
specifically tailored to the West,
which is where Omoda and
Jaecoo began.”
Omoda launched in August
2024 and Jaecoo in January
2025, and were “created for
western tastes,” according to
Wallace. Chery launched its own
brand of cars under the TIGGO
range in September 2025.
According to Carblah,
Omoda is top rated among
customers for sales, service and
ownership, showing that valuedriven emerging brands are
now setting a benchmark for
customer satisfaction.
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.
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.
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 are able to
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
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 decisionmaker, you know what you
are getting with any of these
legacy brands. Coming new into
the market, especially as an →
Q2 2026
Q3
AUTOMOTIVE BUSINESS
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