BLOG Reasons why car brands are recording a surge in European demand

By automotive-mag.com 6 Min Read

Our enquiry data continues to indicate a rapid and sustained rise in consumer demand for Chinese car brands, at rates that would have seemed unthinkable just two years ago.

Notable among them is JAECOO, for which there was a 28% uplift in the enquiries shared with our dealer partners in Q1 v.s. Q4 2025, while the JAECOO 7 and Chery Tiggo 8 occupied the first and third most enquired-about models.

This improved sentiment towards Chinese brands is a trend echoed in several of Carwow’s other European markets. Carwow enquiries for Chinese brands as a whole in Q1 grew by more than 52% in the UK v.s. Q4 2025, over 177% in Germany and 56% in Spain.

This isn’t just a by-product of a busy new car market; these brands are winning on their own merits and competing directly with traditional favourites. From my recent visit to Auto Beijing with a group of Carwow partner dealers, there are four standout reasons why: technology, adaptability, pricing and franchising.

1. The product reality check: adapting for Europe

Chinese OEMs know they need to adapt to succeed in Europe, and not just because some technology is banned in several Western markets. As evidenced by the success of the JAECOO 7 and its growing popularity in the UK, a vehicle that is not on sale in China and is purpose-built for international markets such as Europe. The cars themselves are large because in China, vehicles are often viewed less as a tool to get from A to B and more as a mobile living room for the extended family. This means super-sized SUVs and futuristic MPVs dominate the roads.

Looking at Li Auto – which plans to make a significant appearance at the Paris Motor Show later this year ahead of a UK launch in Q3 2027 – its Li Mega, a flagship MPV complete with an optional table for business meetings, while popular at the Show, is unlikely to trouble UK registration figures and Li Auto knows it. Its European gameplan centres on smaller SUVs built with export markets in mind from the outset.

2. The technology ambition: Software leading the design

Firms like Huawei have moved from being a component supplier to the co-architect of the entire in-car experience. In Beijing, we watched a vehicle park itself autonomously while the driver walked away. The speed of updates and levels of in-car intelligence are already raising consumer expectations across the board.

3. Aggressive pricing comparisons

We learned that AITO and Li Auto – both considered premium by Chinese standards – are retailing seven-seat luxury SUVs at around £50,000. By comparison, a Mercedes EQS SUV starts at roughly £129,000 in the UK. Clearly this has the makings of a very aggressive test of brand loyalty. Even more disruptive is the pricing of smaller premium SUVs, retailing at £25,000 to £30,000 – effectively the price of a petrol Vauxhall Corsa.

The Chery Tiggo 8, Carwow’s Car of the Year, already hints at what this means in practice: a seven-seat SUV at a volume-brand price point that matches the spec of cars that cost double the amount. The pipeline of new launches coming behind it suggests it is very much a sign of things to come.

Our consumer research shows 35% of UK buyers would now consider a Chinese brand, up from 29% in 2022. A record 30% of those polled cite value for money as a benefit to Chinese brands.

4. The franchise future: rejecting the agency model

Perhaps the most significant observation for the UK dealer community is that, while agency models may dominate in mainland China, the conversation in Beijing regarding Europe was strikingly different. Every manufacturer we spoke to was focused on traditional dealer relationships and wholesale agreements. The struggles of established Western brands with agency models in Europe have not gone unnoticed; Chinese OEMs are actively seeking to partner with established dealer groups to get a foothold.

The product story is moving faster than the trust story, and that gap is where the established dealer network has a real role to play. Consumers navigating unfamiliar brands and new technology need guidance, reassurance and expertise, which is precisely what a strong dealer relationship provides. The dealers who build that knowledge will now be significantly better placed as this market continues to shift.

 

Will Jackson, head of commercial at Carwow

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *