Chinese brands lead charge

Strong sales of Chinese brands helped fuel a 14.9 per cent rise in passenger-vehicle registrations in July with BYD, GWM, MG, Chery and Zeekr appearing in the top 15 for marques.

The result comes amid commentary that Chinese brands are putting pressure on established brands from other countries, says Lee Marshall, chief executive of the Motor Trade Association.

He adds: “Many of the Chinese vehicles have one strong appeal to consumers – price. They continue to be attractive to drivers on a budget and represent great value on paper. Flip that on its head and legacy brands continue to decline in overall market share.

“The exact shape of the market in a couple of years’ time is anyone’s guess. However, from the trends we’re seeing develop, we can be certain it will contain a lot less from legacy brands, a lot more Chinese brands and a lot more electrified vehicles.”

During July, sales of new cars went up by 14.9 per cent year on year for an increase of more than 1,000 units compared with the same month 12 months earlier.

It was a strong month for sales of vehicles with a plug, averaging 25 per cent of buyer purchases since March. Hybrid vehicles made up more than half of rental and government purchases.

Marshall, pictured, says: “The US-Iran conflict and related fuel-cost spirals have no doubt contributed to recent trends, with electrified models now representing the majority of registrations in every segment apart from companies.

“For many out there looking for a new car, everything is lining up. The fuel crisis and a growing consciousness of the cost of running a car have coincided with a glut of new battery-electric options with the right features, right technology and importantly at the right price.”

One trend compounding the uptake of new vehicles is the age of used-vehicle imports continues to rise. “The average passenger vehicle imported second-hand now is around 10 years old – a steady and relentless rise from 9.3 years old over the past five years – as dealers import increasingly older vehicles to maintain a competitive low-cost price point.”

Despite the strong Chinese showing, it was a big month for Toyota. It dominated the new-car market with 1,681 registrations, more than double Kia’s volume in second place.