The latest report from Savills on the UK dealer property sector points to a market in flux with new car brands entering the market and a shift to more flexible multi-franchise formats.
The Savills Automotive Outlook & Trends 2026 report highlighted the new Chinese entrants entering the UK market with more flexible multi-franchise formats.
This, it said, was creating more flexible, modular showroom layouts, mitigating risk by reducing reliance on OEM cycles.
Chinese brand AION for example has created a modular showroom display that enables retailers to quickly adopt the new AION brand into their existing showroom space.
It said this will provide retail partners with a cost-efficient, sustainable, easily deployed on-brand showroom presence, avoiding the need for large upfront investments and wholesale interior renovations.
The Savills report also points to the new entrants to the market over the past 15 years.
“The UK operator landscape remains an attractive destination for overseas investment, highlighting the resilience of the sector.
“Since 2022, there have been over 15 UK dealership group acquisitions from overseas entities, most notably from the USA and the Middle East,” it added.
Acquisitions include Brayleys of Johnsons Cars; Group 1 of Inchcape; Alpha Auto of Lookers; Lithia of Jardine, Pendragon, Hatfields and Lloyds Motor Group; Hedin of Stephen James BMW; Allen Group of Delgarth Motors; Von Mossel of Jacksons, Ocean Automotive and Breeze Motor Group and Marubeni Auto of HPL Motors
The report found that institutions have been selling dealer property to the benefit of dealers.
“The release of assets by financial institutions as they reposition following shortening unexpired lease terms has actually reshaped the market in a highly constructive way.
“Around 90% of sellers over the last three years have been institutions releasing mature assets, creating a healthier, more varied landscape where private investors, property companies, and most importantly, car dealer occupiers have opportunities to buy and own their assets.”
