Automotive Business Magazine – Q3 2026 – Digital edition - Flipbook - Page 8
FEAT U R E
OEMs
electric van brand, means you are mostly
dealing with fleets.”
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.
“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.
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AUTOMOTIVE BUSINESS
Q2 2026
Q3
“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.
“We are seeing a shift from a brandloyal, 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, longterm 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. →
