- BYD SETS 60,000 SALES TARGET FOR 2025
- NEW BRAND WILL TAKE CHERY TO 35,000 SALES
- FLEXIBLE WORKING SUPPORT AT 71% OF AUTO INDUSTRY
- CRISIS IN THE UK STOCK MARKET GETTING WORSE
- WEEK AHEAD: JANUARY NEW CAR REGISTARTIONS
- JAECOO 7 STARTING STRONG IN UK
- NFDA LISTS TOP ISSUES FOR 2025
- INDUSTRY SHOCK AT TRUMP TARIFFS & RETALIATION
- MERCEDES IN LEASING REVIEW AS BUSINESS SPRAWLS
- OPINION: New thinking needed
BYD sets 60,000 sales target for 2025
Chinese new entrant brand BYD has told its UK retail network that its sales target for 2025 is around 60,000 vehicles. This volume would put BYD ahead of Tesla and Renault, based on last year’s figures, and close to Land Rover and Volvo.
In 2024, BYD registrations totalled nearly 9,000, equating to a 0.5% market share. At 60,000, BYD would have a share of approximately 3%.
BYD had previously stated it wants to become the UK’s leading manufacturer for EV sales in 2025, but had not put a figure on its exact volume aspirations.
The brand launched in the UK less than two years ago and has already sold more than 10,000 cars, the majority electric. It currently has a network of 60 retailers across the UK and expects this to hit 120 by the end of 2025.
While BYD has a range of just four models now, it is expected to launch a further six this year.
Commenting on the growth plans, one retailer told Auto Sunday that he was selling more BYD EVs than he was selling electric cars from one of his traditional top 5 brands.
Jaecoo launch will take Chery to 35,000 sales
Meanwhile, Chery’s new UK entrants Omoda and Jaecoo, the latter launched last week, aim to sell 35,000 cars in 2025, and nearly double that in 2026.
Speaking to Auto Sunday at the launch of Jaecoo, UK executive vice president Victor Zhang and UK product manager Oli Lowe said the brands were on track to have a 130-strong retailer network by the end of 2025, up from 71 now.
* Read the full Jaecoo story in sister publication Auto Market Insight out next week.
Flexible working supported by 71% of auto industry
Flexible working is now firmly embedded in the automotive industry, according to new research from Ennis & Co Group’s Intelligence team. Despite recent calls for an end to remote working, of the 70 automotive companies studied including leading retailers, 71% supported flexible working in various forms, including hybrid and remote. The remaining 29% made no mention of flexible options.
The findings show that flexible working is now part of the landscape within the industry. It is hard to imagine a return to pre-Covid working practices, with many employees considering flexible working to be a right rather than a benefit.
Crisis in the UK stock market getting worse
Last week’s deal for American Axle and Manufacturing to buy FTSE 250-listed auto components manufacturer Dowalis is a “mini-tragedy”, warns Nils Pratley, as the deal “ought to be structured the other way around… this transaction should be painful for a UK chancellor” intent on rallying the “sleepy” UK stock market.
“Outside the FTSE 100 index, and especially around the £1bn-ish level, even quality companies struggle to grab investor attention”. Cutting stamp duty on shares and encouraging UK pension funds to invest in the UK would help – but efforts here are slow and “while we wait, the crisis in the UK stock market gets worse”.
WEEK AHEAD
Wednesday, SMMT new car registration data
Thursday, Bank of England interest rate decision
DATA INSIGHT
Jaecoo 7 starting strong in UK
Jaecoo 7 2025 target: 12,000. Pre-orders 1,000, including a 400-vehicle fleet deal.
NFDA lists top issues for 2025
Three most important issues for retailers: 1. NI & business rates, 2. ZEV Mandate, 3. Charging infrastructure. https://tinyurl.com/2zbbt559
GLOBAL AUTO
Industry shock at Trump tariffs as Canada, Mexico retaliate
President Trump has signed executive orders to implement 25% tariffs on imported vehicles, parts and virtually all other goods from Canada and Mexico. Commentators warn the move threatens to upend the North American auto supply chain and spark a regional trade war.
Even before the tariffs go into effect this week (Tuesday 4 February) Canada and Mexico have hit back. Canada has implemented a 25% tariff match and Mexico said it will defend its interests.
Analysts say costs will be passed on to customers, adding thousands of dollars to the average price of a new vehicle. Trade organisation MEMA warns there will be “severe consequences” for the US auto industry.
Imports from China will be subject to a 10% tariff. Trump has also said more tariffs are on the way, including on European goods.
Mercedes in leasing review as business sprawls
Mercedes-Benz is exploring a potential sale of its Athlon car leasing business. Those familiar with the matter say it is part of a “broader review of its sprawling operations”. It acquired Athlon from Dutch lender Rabobank in 2016 for about €1.1bn.
Investors expect an update on Mercedes-Benz’ overall strategy during its annual earnings press conference on 20 February.
OPINION
New thinking needed
It’s not only the start of a new year, and for me a new venture with Auto Sunday and sister title Auto Market Insight, but it should also be the start of a new way of thinking about the automotive industry.
In the weeks, months and years ahead, there are a huge number of significant challenges. Some of these are auto retail specific, some concern the wider automotive industry and others are UK and global economic matters.
More specifically, we’re talking about electrification and the ZEV mandate, new entrant brands and the pressure on local sales and global manufacturing, the impact of AI, economic pressures such as sudden tariff changes and even local governmental matters such as the National Insurance and minimum wage increases.
What’s important is that these all interact to put pressure on individual businesses and people.
Just this week, we’ve learnt that BYD aims to sell, or register, 60,000 cars this year. This, in volume terms, would put it alongside Renault and close to Peugeot. At the same time, the dual Chery brands of Omoda and Jaecoo are looking to hit 35,000 cars in 2025 and near double that in 2026. It’s likely there will be around 70 brands on sale in the UK by the end of this year. That’s up from approximately 45 at the start of 2020. And these new brands aren’t looking to be niche players, they’re after volume.
This volume pressure, and the retailer targeting that comes with it, is inexorably linked to the move to electrification and the ZEV mandate – most, but not all, of the new brands entering the UK are EV heavy. The ZEV mandate just encourages these new brands to fill gaps in the market left by traditional OEMs.
If that wasn’t enough, a looming global trade war based on tariffs looks like it will impact the UK and Europe, even if we’re not yet a direct target.
We all know the speed with which the new Chinese brands are coming to the UK. This ‘China speed’, as it was described to me this week by some of the Jaecoo team, could just help them adjust to any new challenges faster than the traditional brands.
I’ve always believed that retailers are possibly the most adaptable businesspeople there are. The question is, can that in-built adaptability move fast enough because, obviously, businesses can’t ignore these factors, continue without change, and survive.
At Auto Sunday, we believe information is key to making the best decisions.
My aim at Auto Sunday, and with sister title Auto Market Insight, is to provide some of the business information needed to tackle the high-speed change and seemingly chaotic outlook for the automotive sector.
So, I’d just like to thank everyone for signing up to Auto Sunday, and I hope we provide valuable reading.
Tristan Young
Editorial Director
Get in touch: tristan@autosunday.co.uk
ISSN 2977-6597
