Tapping into the Chinese car boom: A dealer’s guide

According to AutoTrader’s The Road to 2030 report, two in five UK car buyers are open to considering a Chinese car.

There’s no doubt that in the next five years, Chinese brands will have made significant inroads into the UK market. For retailers, success will depend on choosing the right brands while achieving profitability as quickly as possible – a challenging balancing act where marketing teams will play a crucial role.

If you’re considering adding a Chinese brand to your dealership – or have already done so – this article explores why educating buyers on the benefits of these brands, compared to more established ‘heritage’ manufacturers, is essential.

We’ll also discuss the importance of creating detailed buyer personas to identify the right audiences and drive sales effectively.

China has carved out its position as an EV leader

Over the last decade, Chinese brands have invested heavily in electric vehicles (EVs) and hybrid electric vehicles (HEVs) alongside traditional internal combustion engine (ICE) production.

The UK now has the third-largest EV market in the world; 41.6% of 2024’s new car sales were EVs or HEVs. Research from EY indicates that 59% of UK drivers planning to buy in the next two years are prioritising electric, hybrid, or plug-in hybrid models, up from 54% in 2023.

If environmental concerns are high priorities for your potential buyers, or they want to get ahead of the government’s shortened deadlines for phasing out new petrol and diesel cars, a Chinese EV could be the perfect fit.

Economies of scale create appealing price points

Many of the models offered by Chinese brands – EV and otherwise – sit at a lower price point than similar Western models, even at higher specifications. This is thanks to the economies of scale China can achieve with its raw material sourcing and manufacturing infrastructure. Among the new models introduced in 2024–25, 20 were under £30,000, while the average UK cost for an EV sits at £46,000. As the price of new EVs drops to meet new ICE vehicles, buyers will benefit from lower monthly payments, lower depreciation, and a more active used market.

And, as an additional pull for price-conscious buyers, features considered as ‘optional extras’ or even a subscription for many brands, such as touchscreens and reversing cameras, are often part of a Chinese car’s basic specification.

AutoTrader’s survey found that members of the 17–34 age demographic are most likely to be interested in buying a Chinese car, citing affordability as one of their main motivators. Talking about the reasonable price point of these cars, combined with the leading technologies many models include, can create an ‘affordable premium’ theme to use in your marketing.

You need to build brand recognition to capture buyers

Chinese brands may be here to stay, but there will be a few hurdles to overcome. Brand loyalty is declining, especially for EV drivers, but brand recognition is still important for appealing to buyers.

“That means you’ll need to channel some of your marketing spend into education,” says Faye Thomassen, Head of Marketing at Mediahawk. “You need to show your customers the appeal of Chinese cars, comparing them to similar models they’ll find more familiar (an Omoda 5 versus a Nissan Qashqai, for example).

“Additionally, clear breakdowns of costs, features, and relevant information, such as mileage per charge, are invaluable for supporting potential buyers as they make their decision.”

Create your own buyer personas

“As these cars are new to the UK, it can be difficult to know who the real target market is for each model,” says Faye. “The manufacturers will have their own personas, and you can make an educated guess based on who buys similar cars. But until you start seeing enquiries, test drives, and sales, there’s no way to know if those personas are accurate.”

You can, however, start building your personas quickly – and use the same insight to measure the effectiveness of your marketing activities. That starts with capturing as much data as possible by:

Getting to know your buyers’ preferred channels

Nearly 70% of buyers surveyed by AutoTrader said they did their research both online and in-person at a dealership. Off the forecourt, it can be tricky to pinpoint where a prospective buyer engaged with you first. Call tracking can help you map this journey by assigning different numbers to your PPC, social ads, classifieds, and any other channels. So, when a call comes in, you know its source.

Analysing calls to understand customer priorities

Phone calls can be a treasure trove of information about what your buyers are looking for, their intent to test drive or buy, and their decision triggers – but pulling out these insights manually is tricky.

Conversation analytics can automatically transcribe the call and pick out relevant keywords that tell you the purpose and outcome of the discussion.

You can create custom tags related to your Chinese models, helping you track how people respond to your marketing and how well your team communicates their benefits.

When you know more about who’s interested in your Chinese car brands, it becomes so much easier to tailor your marketing activities to target them more effectively.

Summary

Whether these Chinese brands are simply here to expand the UK market or completely revolutionise the cars we drive remains to be seen.

But their combination of impressive battery technologies, reasonable price points, and commitment to providing ‘bells and whistles’ as standard will make them a strong option for many drivers.

Understanding which subsections of your prospective buyers are interested in Chinese brands, and which features and specifications appeal to them, is vital to achieve profitability quickly.