Chinese challenger brands are likely to prove popular with fleet and used buyers, according to Aston Barclay.

Chinese brands are likely to prove popular with used buyers, according to Aston Barclay

It’s predicting a positive response, based on the success of MG in the new and used market over the past few years and the relative cost and availability benefits that the new Chinese arrivals can offer.

Chief revenue officer Mark Hankey said: “The lead times for Chinese ICE and EV products are relatively short which suggests if fleets can get hold of the cars they will add them to choice lists.

“Fleets will also look forward to offering their drivers new EVs at sub-£30k prices where the majority of EVs have generally retailed at more than £50,000 up until now,” he added.

New brands already entering the UK market or coming soon include BYD, Great Wall’s Ora and Wey brands, and Nio – bringing a pricing war on EVs and new ways of thinking.

Currently, many manufacturers have prioritised retail and leasing sales, but Aston Barclay expects the new Chinese brands to build awareness through rental, as successfully done by MG.

“From a remarketing perspective, we generally don’t predict new models hitting our auction lanes for up to two years after their launch. However, if cars get placed with rental suppliers we might see some of the new Chinese brands reach the nearly new used market during 2024 and early 2025,” added Hankey.

MG’s success on the used market suggest they will fare well. “Buying a Chinese used car doesn’t seem as though it will be a compromise as the success of brands such as MG in the used market can confirm,” he continued.

“Currently values of MG ICE and EV cars sold through the Aston Barclay halls range average between £11,500-£13,500. If other Chinese brands reach the used market at that level then demand should be strong,” said Hankey.

Previously Cox has said that an influx of Chinese brands over the next 12-24 months could drive competition on pricing for both battery electric vehicles and petrol and diesel models on the new car market, while also increasing the value proposition.

They could also helpful improve new car supplies over the next year, as OEMs react to the growing number of Chinese brands launching in the UK, according to Shoreham Vehicle Auctions (SVA).

“OEMs will have to decide whether they want to protect their market share and compete with the new Chinese brands that have a very strong proposition and product availability,” said MD Alex Wright.

Euro NCAP safety ratings also show high safety standards from Chinese models. Recent five-star winners include the MG4, the Mifa 9 electric MPV from SAIC’s Maxus brand, Ora Funky Cat and Wey Coffee 01.