Chinese Automakers Gear Up to Navigate the UK Fleet Market

In a landscape once dominated by legacy brands, the UK's automotive market is on the verge of a dynamic shift. A wave of Chinese automakers, fueled by innovative electric technologies, is poised to enter the scene, challenging established norms. As they prepare to navigate the UK fleet market with a suite of electric offerings, these overseas brands herald a new era of automotive competition and choice.
Picture of Aaron Kelly

Aaron Kelly

Motoring Editor at The Executive Magazine

The landscape of automotive choice in the UK has been widening over the years, moving beyond the traditional picks of Ford and Vauxhall. This expansion has been noted even within the premium sector, where stalwarts like Audi, BMW, and Mercedes-Benz now vie for market share against rising stars like Hyundai and Kia. The warm reception of Korean carmakers in the UK showcases the market’s openness towards Asian automotive brands.

As established European brands grapple with the transition from internal combustion engines (ICEs) to electric powertrains, this gap presents a ripe opportunity for overseas brands to establish a foothold. China, having ascended rapidly as the world’s largest producer of electric vehicles (EVs), eyes a larger footprint in Europe. Although the current imprint is modest, the exponential growth and scalability of Chinese EVs signal a changing horizon for the UK’s roads. By the decade’s close, an influx of 10 new Chinese brands is anticipated in the UK, broadening the vehicular palette for fleet managers and company car drivers.

SAIC

One notable player is SAIC, China’s largest carmaker. This state-owned giant, with its base in Shanghai, acquired MG in 2008, transitioning the production of all MG models to its Chinese facilities in 2017. The phased revitalisation of MG saw the establishment of a new retail and aftersales network, initially offering budget-friendly hatchbacks and SUVs. This move paved the way for electric models, culminating in the recent launch of the MG 4, a hallmark of SAIC’s dedicated EV platform. The modular design of this platform hints at a forthcoming array of models across key segments. MG’s journey also heralds the unveiling of the Cyberster electric sports car in 2024, marking its upscale shift. Besides MG, SAIC also houses the Maxus brand, boasting a growing roster of electric vans, including the UK’s sole electric pick-up truck offering.

Geely

In the arena of Chinese automotive prowess, Geely holds a significant presence. Post its acquisition of Volvo Cars in 2010, Geely orchestrated a comprehensive model revamp, based on two innovative platforms. The XC90 SUV led the charge, soon joined by models like S90, XC60, and S60. The XC40 emerged as the first to host an electric powertrain, aligning with Volvo’s vision to phase out all ICE variants by 2030. While Volvo is a shining chapter in Geely’s UK narrative, the spin-off of the Polestar tuning division into a standalone brand has also garnered attention, especially among fleet customers. The current single-model offering from Polestar is set to burgeon into a full lineup in the near term. The Polestar 2, sharing its platform with Volvo XC40, heralds the imminent launch of a large electric EV, branded as Volvo EX90 and Polestar 3.

Geely’s platform-sharing ethos also extends to its engagements with Mercedes-Benz and Smart. Post acquiring a 50% stake in Smart in 2019, Geely recently launched the #1, a compact electric SUV, built on a new platform that also serves as the foundation for the upcoming Volvo EX30. Smart aims to develop a complete model lineup in the ensuing years. Geely’s control extends to Lotus, which is evolving from a low-volume specialist carmaker to a premium EV brand, with the Eletre as its first launch, to be followed by more SUVs and a saloon.

Additionally, Geely’s foray in the UK is further enriched by Lynk & Co and Zeekr, both set to debut this decade. Lynk & Co, leveraging Volvo platforms, and the more upscale Zeekr, aligning with Polestar, plan to adopt a direct sales model, with aftersales service through the Volvo retail network.

BYD

BYD, acronym for Build Your Dreams, is a Chinese automotive brand that is actively advancing its launch strategy in the UK. The foray began with the introduction of the Atto 3 compact SUV in spring, swiftly followed by the debut of the Dolphin hatchback. As the year progresses towards its end, BYD is gearing up to unveil the Seal, an electric D-segment saloon. Both the Dolphin and the Seal are stellar representations of BYD’s Ocean series, crafted meticulously on bespoke EV platforms.

In preparation for a robust market presence, BYD has appointed Eric van Munsteren as the UK fleet sales director, ensuring a smooth transition for fleet customers with a promising lead time of less than three months for its vehicles. Diverging from the trajectory of many new entrants, BYD is laying down a substantial retail infrastructure, with an ambitious goal to establish 100 retail sites by the year 2025.

Chery Automobile

China’s top car exporter, Chery Automobile, has a solid consumer base across Asia, Russia, and South America, along with a presence in the Italian market under the Br brand. In the UK, Chery is set to introduce Omoda, a new brand that emerged last year. The maiden model of Omoda is expected to hit the market in 2024, marking the brand’s UK debut with the Omoda 5, a mid-size crossover designed to compete in the segment alongside the Nissan Qashqai. Aiming high, Chery targets 15,000 registrations for the Omoda 5 in the first year, encompassing both fleet and retail sectors with petrol and electric variants available from launch. A diverse lineup of Omoda models is envisioned to follow, broadening the brand’s appeal in the UK market.

Great Wall Motors

Great Wall Motors, recognised by UK fleet buyers for its budget-friendly Steed pick-up truck, has rejuvenated its presence with ORA, a fresh EV brand launched last year. The brand introduced the ORA Funky Cat, a high-specification, retro-styled city car, to the UK market in Autumn 2022. As 2024 looms, ORA is poised to expand its offering with a new saloon car, yet to be named, boasting an impressive range of around 300 miles and power output reaching up to 400PS.

Distribution of ORA models in the UK is managed by IM Group, which also handles imports of Subaru and Isuzu. This arrangement has spurred a burgeoning network of sales and aftersales sites across the country, nurturing a supportive ecosystem for ORA’s growth.

AiWays

AiWays, a Chinese start-up established in 2017, has swiftly escalated to a position where European expansion is on the horizon. Initially slated for a 2020 European launch, the plans were deferred owing to the Coronavirus pandemic.

Having established a foothold in Germany through a direct sales model, AiWays has earmarked the UK as the first right-hand drive market to venture into. The brand showcases two models, the U5 and U6, both electric SUVs. The U5 is pitted against the VW ID4, while the U6 aims at a more premium market segment.

Nio

Nio stands distinct with a unique selling proposition among Chinese brands. It has pioneered a battery swap programme, enabling drivers to replace their discharged batteries swiftly. A management team is already in place in the UK, with Matt Galvin, formerly with Volvo, as the managing director, and ex-Honda fleet head Marc Samuel as the national fleet sales manager.

The UK launch awaits the establishment of the necessary infrastructure to support battery swaps, a concept well realized in China with over 1,200 Power Swap stations. Meanwhile, Nio is extending its network to Norway, the Netherlands, and Germany. Earlier this year, Nio unveiled new electric models, the ET5 and EL6, as part of its European line-up, set to compete with the BMW i5 Touring and Audi Q8 e-tron respectively.

Xpeng

Xpeng is gearing up to introduce its models in the UK next year, following its European expansion blueprint. Already retailing electric cars in Denmark, the Netherlands, Norway, and Sweden, the brand is eyeing Germany, France, and the UK as the next destinations.

The Xpeng G6 electric SUV, slated to be the first arrival on British shores, is engineered on a new platform featuring an 800v electrical architecture, capable of charging at speeds of up to 480kW. The G6 comes with two powertrain variants, achieving ranges of 360 and 469 miles in tests.

Beyond the G6, Xpeng has a portfolio including the G3 mid-sized SUV, P7 and P5 saloons, and flagship G9 SUV, though their UK availability remains unconfirmed. In China, Xpeng has developed its own charging network akin to the Tesla Supercharger network, along with significant investments in self-driving technology development.

HiPhi

The UK anticipates the arrival of HiPhi by 2026, a brand synonymous with high-tech premium cars exuding distinctive styling. HiPhi plans to introduce its first two models, HiPhi Z and HiPhi X, in Europe by the end of this year, with the UK market awaiting its turn.

The HiPhi Z, a saloon car, is designed to compete with the Audi eTron GT and Porsche Taycan, while the HiPhi X, with its gullwing-style rear doors, aims to rival the Tesla Model X. The brand’s European expansion also hints at a smaller crossover, HiPhi Y, broadening the luxury electric vehicle spectrum.

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