Luxury SUV dealers unfazed by new Chinese rivals – should they be?

Buyers of premium SUVs and off-roaders are set to have more choice than ever as an influx of Chinese models are due to arrive in the UK - and while sellers of established rivals have told Autocar they're not worried about the newcomers' arrival, experts have warned that they should be braced for a sales impact. 

Models including the Denza B5, Yangwang U8, iCaur V27, Haval Tank, 212 T01 and Dongfeng M-Hero are either confirmed or expected to be sold here within the next few years.

Crucially for their rivals, they are related to brands already quickly establishing themselves in the UK and mainland Europe, such as BYD (Denza and Yangwang), Chery (iCaur) and GWM (Haval Tank). 

Indeed, Chinese brands accounted for almost 10% of the UK new car market last year, driven by new entrants Jaecoo and Omoda, both from the Chery stable, suggesting that brand loyalty is currently close to an all-time low in the UK. 

Ahead of these new entrants' arrival, an Autocar reporter spoke to a number of dealers to assess the view of those on the frontlines. The reporter posed as a customer in order to get the most undiluted views possible. 

First, the reporter visited a Mercedes dealership. He asked if models like the Denza B5 and Yangwang U8 would be worth considering as a much cheaper alternative to an equivalent Mercedes model, such as a G-Class or GLS. "They will be well made and well equipped but Mercedes is an internationally recognised brand," said the dealer. "The new Chinese models can't compete with that." 

The reporter also contacted an Ineos dealership and was keen to know how they thought the Grenadier 4x4 might fare against these incoming new Chinese rivals. The Ineos salesman said he was unaware of those mentioned Chinese brands, adding that the Grenadier's only immediate rival was the Land Rover Defender. "It's likely to remain so too," he said. 

As for the Defender whose most obvious rival will be the similarly styled Geely Galaxy Cruiser - a Land Rover salesperson was unfazed. "The new models might threaten the likes of Audi and BMW but Range Rover and especially Defender are a breed apart, with years of heritage behind them," they said. "There's huge brand loyalty. They are prestige brands and that will count for a lot." 

However, industry expert Philip Nothard, insight director at Cox Automotive International, warned premium car dealers against such complacency. "The people at Jaecoo and Omoda are shocked at the premium part-exchanges they're getting and which include Land Rover, Mercedes and Audi models," he said. "Their customers can clearly see what value for money Chinese brands offer.