Brand loyalty built the car industry, but new entrants are chipping away at it

Brand loyalty to car brands is in decline as an explosion of choice reshapes the car buying experience. Our data shows us that consumers are shifting away from some of our most well-known legacy brands, drawn by the promise of innovation, high-tech features, and aggressive pricing from new market entrants.

Sceptics initially argued that low brand awareness would protect the incumbents, but that defence appears to be fading quickly. Awareness of new brands, such as JAECOO, BYD and CHERY, has rocketed - with several more brands due to land in the UK imminently. In a recent Carwow study, only 16% of those surveyed said they hadn’t heard of at least one of the new entrant brands listed, a stark contrast from the 64% when the same question was asked in 2023. It’s not just awareness either; consumer sentiment has also moved quickly - 35% of respondents would now consider buying their next car from a Chinese brand, up from just 24% just three years ago, in 2023. 

The data: Momentum is shifting

New brands are arriving at pace, and Carwow’s H1 2026 enquiry data captures the momentum perfectly. Consumers are increasingly broadening their consideration set - while the volume of enquiries for legacy brand models remained static in the first half of the year (based on an average across all legacy brands and all fuel-types), the relative newcomer, Jaecoo 7, saw enquiries surge by 53%. 

This enquiry data is being born out in sales data too. In 2025, one in 10 new cars sold were from an emerging brand, up from 5% in 2024. In 2026 to date, Carwow’s most sold new-car brand is Chinese manufacturer, BYD, followed by Renault and Toyota. . 

The legacy brand quality

Notably though, Carwow Group’s 2026 Driver Power survey revealed that legacy brands are delivering better cars than ever. Premium marques like Mercedes-Benz took the overall spot this year, dominating categories like driving enjoyment and interior quality. Toyota drivers remain the most loyal, with 75% stating their next car will be another model from the Japanese manufacturer, while Tesla and Lexus also command deep-seated loyalty.

It’s an age-old consumer disconnect: they love the car they drive, but they aren't married to the brand. Legacy brands are winning the ownership satisfaction battle, but they are beginning to lose the consideration battle. Consumers are happy with their cars, but they aren’t showing loyalty when it comes time to replace them. With the UK suffering a cost-of-living crisis since 2021, consumers are increasingly loyal to the best deal that meets their needs, not the badge on the bonnet.

The impact on brands: Don't just watch; adapt

According to the Society of Motor Manufacturers and Traders (SMMT), there are currently more than 160 EV models available on the market, with an additional 60 expected to launch before the end of 2026. With increased choice of brands, models and powertrains, consumers spend more time in the discovery and consideration phases, which is reshaping the sales funnel. OEMs - car manufacturers - must concentrate their efforts on standing out in an exceptionally crowded market. This requires a two-pronged strategy: smarter data and broader visibility.

We’ve seen the impact of this firsthand through our partnership with ITVX. By launching 'Auto Match', we’ve used our first-party data to help manufacturers target in-market buyers while they watch their favourite shows. Auto Match campaigns have delivered 129% more web visits than standard campaigns and have been shown to narrow a buyer’s shortlist by 27%. 

Equally, the shift is moving to the living room. Our recent collaboration to launch a dedicated Carwow FAST channel on Samsung TV Plus - a first for US and UK audiences, with more regions to follow - marks the moment creator-led automotive content becomes a mainstream TV staple. By leveraging our library of drag-racing and review content to reach 100 million+ monthly active Samsung TV Plus users, we’re cementing Carwow’s reputation for car-entertainment directly in the living room.

Beyond the purchase: Building long-term loyalty

On Carwow, the share of leads for new market entrants has jumped from 14% to 30% this year. But acquisition is just one battle won - not the war. Our next Driver Power survey will be the true bellwether - can the challengers convert this initial interest and sales into long-term loyalty (will consumers choose them again, and again?), or will legacy brands reclaim ground once real-world data on reliability, insurance premiums or resale values becomes a critical part of the true-cost calculation. New entrants have mastered the art of the first sale, but the real test is securing the second. Lasting success will belong to the brands that turn initial interest into long-term loyalty.