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Auto Sunday – 27 April 2025

Your auto industry briefing for the week ahead

by RIchard Aucock
May 16, 2025
0

 

  • ZEEKR COMING TO UK IN 2026
  • FIREFLY DELAYED DUE TO NETWORK CHALLENGES – BUT RHD CONFIRMED
  • HEYCAR: VW PULLS FUNDING AFTER RETAILER REJECTION
  • PROFITS TUMBLE AT DRIFT BRIDGE
  • WEEK AHEAD: NFDA Driving Automotive 2025
  • HOW TESLA HAS SUFFERED UNDER TRUMP
  • UK US TRADE BALANCE
  • BYD IN EU SHAKE-UP AFTER ‘STRATEGIC STUMBLES’
  • CALIFORNIA RETAILERS FILE DIRECT SALES LAWSUIT AGAINST VW
  • OPINION: When to discount

Zeekr coming to UK in 2026

Chinese luxury brand Zeekr is coming to the UK in 2026. Part of Geely, which also owns Volvo, Polestar, Lotus and LEVC, Zeekr Europe CEO Lothar Schupet told The Independent it plans “to be live in the UK early next year and we’re trying to accelerate as much as we can.

“We are in discussion with dealer groups… we have initiated already the ride and drive development, which is not very complex as we have launched in Australia and Malaysia where we have already right-hand-drive products.”

He called the UK market “very important – one of the most important markets in Europe” and the launch model is likely to be the Zeekr 7X, a rival to the Tesla Model Y.

Zeekr models are sold out of Volvo retailers in other countries, and could be in the UK too. “We see not a lot of overlapping with Volvo,” said Lothar. “Volvo’s more on the safety and traditional side; we are on the technology progressive side.

“That’s why our dealers are multi-brand dealers often with Volvo, Polestar and us in one location and we see no big cannibalisation.”

 

Firefly delayed due to network challenges – but RHD confirmed

Nio has delayed the European launch of its Mini and Smart-rivalling Firefly EV brand to Q3 2025 “after it underestimated challenges involved in sales and service network expansions in the region,” reports Automotive News.

The Chinese OEM is now seeking more local partners to expand in Europe and is expected to announce deals soon.

Nio president Qin Lihong confirmed Firefly has developed a right-hand drive version, which will be ready to enter the market by October. The brand is exploring expansion plans with local partners in right-hand-drive markets including Southeast Asia and the UK, he said.

 

Heycar: VW pulls funding after retailer rejection

Reports in Germany say vehicle marketplace Heycar is to close. Volkswagen Financial Services (VWFS), Heycar’s majority owner, told trade publications the marketplace will wind down operations in Germany next month, and in the UK in the next few months.

“The shareholders have decided not to provide Heycar with any further funding,” Automobilwoche reported a spokesperson as saying.

“The platform failed to meet the expectations placed on it,” Kfz-Betrieb reported. “VWFS overestimated the development of digital purchasing behaviour and underestimated marketing costs, the VWFS spokesperson had said. Furthermore, they had hoped for greater retail participation.”

Heycar launched in 2017 to compete with other European marketplaces, said AIM Group. It was owned by several OEMs including Volkswagen, Mercedes-Benz and later Renault. Mercedes-Benz sold its stake in May 2023.

However, in July 2023, Volkswagen itself launched a marketplace in Germany for retailers who weren’t participating in Heycar. It was developed with the help of the Association of German Volkswagen and Audi Partners, who joined forces with used car platform AutoScout24.

 

Profits tumble at Drift Bridge

Drift Bridge Garage, which holds franchises including Audi, Volkswagen and Honda, saw 2024 profit fall from £2.7m to just £49k. It blamed oversupply following the global chip shortage for this, with retailers returning to “offering large discounts to get stock moving”.

Turnover also fell 12% from a record high to £154.1m – which it said was due to the agency model. “Audi, Volkswagen and Honda all started the sale of retail BEV through the agency channel in 2024. Audi also moved all remaining fleet sales onto the agency channel.”

WEEK AHEAD

Tuesday & Wednesday, Commercial Vehicle Show. Auto Sunday editors will be attending

Wednesday, BRC Shop Price Index

Wednesday, Nationwide House Price Index

Thursday, NFDA Driving Automotive 2025 in Westminster. Auto Sunday editors will be attending

Thursday, UK consumer credit

 

DATA INSIGHT

How Tesla has suffered under Trump

$800bn: Fall in Tesla market value, reports the FT, from its peak in December 2024 to Q1’s sales and earnings release last week. Elon Musk’s wealth has fallen $100bn.

 

UK US trade balance

£2.2bn: Overall difference in UK imports and exports between the UK and US, leaving the trading relationship broadly balanced. America is, however the biggest consumer of UK vehicle experts, with sales of £9bn in 2024. China is second, reports The Sunday Times, on £4.2bn.

GLOBAL AUTO

BYD in EU shake-up after ‘strategic stumbles’

BYD is overhauling its European operations after strategic stumbles including not signing up enough retailers and failing to hire executive with local market knowledge. Automotive News reports BYD is also boosting its plug-in hybrid range after deciding a pure EV strategy was a “hard sell” in many European countries.

BYD hired special adviser Alfredo Altavilla last summer, and he has since poached several rising stars from Stellantis, including former UK chief Maria Grazia Davino. “These were not people that we were happy to lose,” a Stellantis source reportedly said.

 

California retailers file direct sales lawsuit against VW

The California New Car Dealers Association has filed a lawsuit against Scout and Volkswagen Group over direct sales. The lawsuit says Scout’s direct-to-consumer model violates a California law and retailers will be “deprived of the opportunity to sell highly desirable Scout Motors Vehicles”.

OPINION

When to discount

Marketing from my local Ford retailer dropped into my inbox this week offering a test drive of the new Puma Gen-E, a car that should give the brand a much-need EV boost and is now in UK showrooms.

The marketing raised two thoughts.

Firstly, with my journalist hat on, I wondered how slick the marketing and test drive booking process was. A few clicks later and the answer is: very. Full marks to my local Ford retailer Group 1.

Secondly, and with a genuine personal interest, how much is it?

I have a soon-to-be 17-year-old who, I suspect, will be better off in an automatic than a manual – and if that’s the case, why not go electric? They’re not going to be driving particularly far and we’re fortunate enough to have a driveway and a home charge point.

I had been looking at used EVs, but I’d heard about Ford’s offer of five years’ servicing and roadside assistance with its electric cars, plus 10,000 free miles of electricity. It’s a seriously tempting offer and only really means I’d have to worry about insurance and the monthly payment.

It’s while trawling the classifieds, from all over the country, I found the Puma’s already available with discounts of very nearly £2,000.

Obviously, Ford is no longer pursuing direct sales so can’t set the price and retailers are free to do what they want. However, I do wonder what the thinking is behind discounting a newly launched car even before press or public have driven it.

Do car buyers insist on a discount before they’ll come into a showroom? Is competition so fierce that the only way to win customers is with price cuts?

A quick look at the latest Renault 5 says ‘no’ – despite the R5 being similarly priced to the Puma and surely one of the most direct competitors.

So it must come down to demand? But, and this is a genuine question, how do you properly judge demand before a car is launched? Can pre-orders be relied on?

I may be a few months away from picking a car, but as a potential buyer, early discounting implies a lack of confidence in the product and makes me worry about residual values.

Tristan Young

Editorial Director

Get in touch: tristan@autosunday.co.uk

Tristan Young, Auto Sunday

ISSN 2977-6597

Tags: BYDCV ShowDrift BridgeFireflyFordHeycarMaria Grazia DavinoNFDANioScoutTeslaVolvoVWZeekr

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