Dealers must prepare for fundamental changes in 2026, as Chinese OEM growth, advanced digital interactions, and stricter pricing redefine the UK car market.
Mike Allen, managing director of Cambria Private Capital said dealer performance in 2026 will increasingly depend on selecting the right OEM partners, as the number of brands in the UK is expected to exceed 90.
While headline volumes appear stable, he warned that the market is “significantly tougher” when examined in detail.
More choice means both risk and reward for dealers. Quick response to emerging brand volume is key to maintaining strong margins.
The message came from a briefing from The Lead Agency featuring Andy Barratt, CEO of Anduma Advisory. Barrett, a former chairman and MD of Ford of Britain spent over two decades with the Blue Oval. He is now based in the United Arab Emirates where he has seen at close quarters the impact of Chinese brands on the UAE market.
He said in the UAE 55 Chinese brands are already competing, creating an “internal price war” as they chase customers. He believes this pattern is now moving towards Europe.
“Dealers in the UAE are signing up to targets that are a stretch,” Barratt said. “That fuels trading patterns built on extraordinary volume.
“With the Chinese domestic market under pressure after its own price war, OEMs are exporting pre-registered stock. They are now actively seeking new overseas markets. Chinese brands are targeting global sales of 25 million vehicles by 2026.”
Barratt added that Chinese OEMs are also disrupting the market through the democratisation of technology, offering high levels of features and content as standard. This, he said, is undermining traditional model hierarchies and long-standing series strategies built up by legacy manufacturers over decades.
Brand loyalty is declining as value and technology drive choices, while rapid model launches give Chinese brands an edge, debuting cars about 18 months ahead of rivals.
Pictured Chinese cars lined up in Zeebrugge port