Experts are warning that the UK should prepare for a "once-in-a-generation" shock for car dealers amid a number of "threats" the industry could face.
Rising interest in Chinese brands could impact the ability of car dealerships to remain profitable, in addition to the influx of electric vehicles.
Chinese brands like BYD, Jaecoo and Omoda have made major steps in developing their visibility across the UK as they continue their global expansion.
Data shows that BYD is quickly becoming one of the key players with almost 20,000 new vehicle sales this year, an increase of 567 per cent compared to new registrations last year.
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|An expert has warned that dealerships face massive threats in the near future
Other brands have also made impressive progress, including Omoda, with almost 7,000 sales, and Jaecoo with 8,399 registrations, despite both launching in the UK within the last 12 months.
These brands have all been backed by large advertising campaigns, as seen by BYD's presence at the European Championships last summer and Omoda/Jaecoo's sponsorship of the Investec Champions Cup and EPCR Challenge Cup.
Other brands from China are also set to make their presence felt in the coming months and years, including GAC, Geely and BYD's premium brand, Denza.
Jon Sheard, operations director of ADS (Automotive Data Solutions), said dealers and drivers were seeing a "once-in-a-generation transformation of the market".
He added: "So far, dealers have largely been sheltered from challenges from more sophisticated operators, but that is changing fast.
"The EV transition alone is a significant threat to dealer profitability, due to lower servicing requirements, but the tsunami of EV-focused Chinese brands entering the market will change the UK car parc beyond recognition."
The expert also warned that many dealerships would need to adapt to the changing market landscape or they could risk being left behind.
He noted that dealers who tend to prioritise low-margin new car sales could be more at risk, especially as other brands look at higher-margin aftersales.
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Data shows that many dealers are unprepared for a spike in interest in certain vehicles, including electric cars and Chinese-built models.
Around 65 per cent of MOT dates are listed incorrectly in customer databases, while there has been a 60 per cent increase over the last decade in the failure to register keeper changes.
Sheard warned that many US-owned dealerships are set to roll out "American-style" retention strategies, which will create an even larger gap between dealers.
ADS suggests that dealers booking a customer for a safety recall generate an average of £300 in additional revenue.
BYD | BYD has dramatically increased its presence in the UK over the last 18 months
However, many dealers cannot benefit from these changes because they do not have the correct customer contact details.
Sheard added: "Combine these headwinds from abroad with a domestic car parc that increasingly requires little more than new tyres, and we foresee major divergence in the fortunes between those dealers who act now and those who continue with business as usual.
"We saw in the financial crisis of 2008 how quickly the landscape can shift when multiple threats converge.
"Dealers who fail to grasp the nettle on customer data quality and who delay implementing clear segmentation and customer retention strategies, risk being quickly left behind as market change accelerates."