Changan aims to be ‘attractive franchise’ for dealer partners

Staff
By Staff
3 Min Read

Changan, the latest Chinese brand to launch in the UK, expects to sign terms with 60 dealerships by the end of the year, with an ultimate target of 100 locations by 2028.

The manufacturer, which will introduce its first car in September under the Deepal marque, has a relentless roadmap that will see a full range of electric, plug-in hybrid and hybrid SUVs available within two years, sold under three marques: Changan, Deepal and Avatr. Changan will be the main showroom corporate identity, however.

“As an overall package we aim to be an attractive franchise,” said Nic Thomas, Changan UK managing director (pictured above).

“We have aligned everything for dealers to retain margins, where demand is greater than supply – that’s the business case. We aim to be a top partner with a blend of local heroes and national groups.”

Thomas expects to sign terms with 60 dealerships by the end of the year with at least 45 expected to be fully operational. Within three years, he wants 100 sites with a maximum of 25 partners.

Approximately 60% will be with regional partners, 30% with national groups and 10% with local dealers.

Their commitment is to a 200sq.m showroom space able to display three cars initially, rising to five or six next year. The majority are expected to be on multi-franchised sites, but the Changan brand must be clear.

“We expect to be a significant volume brand by 2027 in the UK and top 10 within five years – 5% market share,” Thomas said.

To hit that marker would require 100,000 registrations which would see Changan overtake the likes of Hyundai, Peugeot, Renault and Vauxhall (based on their 2024 sales performance)..

Thomas added: “We have the back-up, the team, the products and the investment to do this.”

Fleet will be a crucial part of the mix with the bias towards full electric and PHEV, but Thomas expects to win sales in the retail market with the right pricing.

“Fleet will account for 40-50% of our sales, and a higher proportion of BEV through leasing and salary sacrifice,” he said.

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