Table of Contents
Executive Summary
-
- The market
- New and used car sales down for a third successive year
-
- Figure 1: UK new and used car sales, by volume, 2014-24
- Polarisation evident within the car parc
-
- Figure 2: Age structure of the UK car parc in years, 2014 and 2018
- Dual-purpose cars have seen a significant expansion in their share of sales
-
- Figure 3: New car registrations by category, percentage point change, 2014 and 2018
- Interest in diesel plummets in favour of petrol and alternative fuels
-
- Figure 4: Sales of new cars, by fuel type, 2014 and 2019
- Companies and brands
- Buyers shifting from mass-market to premium
- Innovations are a key area for manufacturers
- Advertising investment is in decline
- German premium brands show the strongest differentiation and trust
-
- Figure 5: Attitudes towards and usage of selected brands, December 2019
- The consumer
- Nearly three quarters of adults now own a car
-
- Figure 6: Car ownership, November 2019
- A majority of cars in ownership were purchased from new
-
- Figure 7: Age of car owned, November 2019
- 61% of non-car owners don’t hold a driving licence
-
- Figure 8: Other access to cars, November 2019
- Smaller cars are by far the most popular
-
- Figure 9: Type of car owned, November 2019
- Commuting is the main use for cars
-
- Figure 10: Reasons to use a car, November 2019
- Digital is the most popular channel for information
-
- Figure 11: Sources of information, November 2019
- What we think
Issues and Insights
-
- Where next for the car market?
- The facts
- The implications
- What future for manufacturers outside of the premium sector?
- The facts
- The implications
- Young adults are a key audience for sales
- The facts
- The implications
The Market – What You Need to Know
-
- Car sector remains in a weak position
- Both new and used markets have seen falls
- Over a third of households consist of two or more cars
- Franchised dealers continue to strengthen their market presence
- Cars are becoming more expensive for owners
Market Size and Forecast
-
- Car sales remain weak with a further fall in sales likely in 2020
-
- Figure 12: UK new and used car sales, by volume, 2014-24
- Forecast methodology
Market Segmentation
-
- Both new and used markets are in retreat
-
- Figure 13: New and used car market volumes, 2014-19
- Trend towards owning older cars is increasing…
-
- Figure 14: Age structure of the UK car parc in years, 2014-18
- … as UK car parc expands
-
- Figure 15: Number of licensed cars (Great Britain), million units, 1998-2018
- Cars are most likely to be used on trips of more than five miles
-
- Figure 16: Mode share of trips, by main mode (different trip lengths), England, 2018
- Growing percentage of households own two or more vehicles
-
- Figure 17: Percentage of households with car availability, England, 2008-18
- Car ownership is growing although is lowest in London
-
- Figure 18: Household car ownership by region (England), 2007/08 and 2017/18
- Dual/multi-purpose vehicles are becoming more popular with buyers
-
- Figure 19: New car registrations, by broad segment (volume share), 2013 and 2018
- Dual-purpose cars increasingly challenge smaller vehicles
-
- Figure 20: New car registrations by category, 2015-18
- Alternative fuelled vehicles making progress in the new car sector…
-
- Figure 21: Sales of new cars by fuel type, 2014-19
- … although petrol vehicles continue to dominate the wider car parc
-
- Figure 22: Number of licensed cars (Great Britain), million units, 2014-19
Channels to Market
-
- Franchised dealers continue to strengthen market presence
-
- Figure 23: Sales of new and used cars, by channel, 2014-18
Market Drivers
-
- More men are likely to be car owners
-
- Figure 24: Full car driving licence holders by age and gender, England, 2018
- Trips taken are growing but not distance travelled
-
- Figure 25: Trips, distance travelled and time taken, England, 2008-18
- Costs of owning a car have risen noticeably since 2017
-
- Figure 26: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2014-19
- Over half of adults plan to buy a car in the next three years
-
- Figure 27: Do you or someone else in your household plan to buy a car(s) within the next three years, November 2019
- Around half of buyers will purchase new in the next three years
-
- Figure 28: Intention of purchasing a car/s in the next three years, by new or used/second-hand purchase, November 2019
- Restrictions on using a car are growing
Companies and Brands – What You Need to Know
-
- Premium marques are in the ascendance
- Innovations focus on safety and comfort
- Advertising investment is in decline
- Brands occupy distinct positions within the market
Market Share
-
- Premium marques are in the ascendance
- Volume manufacturers suffer with value brands partly to blame
-
- Figure 29: Manufacturer shares of new car registrations, 2013, 2015, 2017 and 2019
- New buyers prefer small cars
-
- Figure 30: Top 10 new car models, 2018 and 2019
- Used market sees growing presence for premium brands
-
- Figure 31: Top 10 used car models, 2018 and 2019
Launch Activity and Innovation
-
- Volvo redefines its view of personal mobility
- Drive Recorder offers improved video recording
- AirBubbl offers enhanced indoor air quality
-
- Figure 32: AirBubbl in-car air cleaner
- Subaru Driver Monitoring System
Advertising and Marketing Activity
-
- Advertising investment follows same track as new car sales
-
- Figure 33: Recorded above-the-line, online display and direct mail total advertising expenditure by car manufacturers, 2015-19
- Hybrids, electric and alternative vehicles represent an emerging sector
-
- Figure 34: Recorded above-the-line, online display and direct mail total advertising expenditure, by type of car, 2015-19
- Most manufacturers have scaled back investment
-
- Figure 35: Recorded above-the-line, online display and direct mail total advertising expenditure by leading car manufacturers, 2015-19
- Television is by far the most important channel for advertisers
-
- Figure 36: Percentage media type split of recorded above-the-line, online display and direct mail total advertising expenditure by car manufacturers, 2015-19
- Nielsen Ad Intel coverage
Brand Research
-
- Premium German brands perform well for trust and differentiation
-
- Figure 37: Attitudes towards and usage of selected brands, December 2019
- Key brand metrics
-
- Figure 38: Key metrics for selected brands, December 2019
- Brand attitudes: Škoda and Kia are seen as offering good value
-
- Figure 39: Attitudes, by brand, December 2019
- Brand personality: MINI is positioned as fun while Škoda is viewed as boring
-
- Figure 40: Brand personality – macro image, December 2019
- Brand personality: Micro image analysis presents a complex landscape
-
- Figure 41: Brand personality – micro image, December 2019
The Consumer – What You Need to Know
-
- 74% of adults own a car
- Most cars in ownership were purchased new
- Strong link between holding a driving licence and owning a car
- Smaller cars are more popular
- Commuting is by far the most important use for a car
- Digital is the most important channel for information
Car Ownership
-
- Nearly three quarters of adults now own a car
-
- Figure 42: Car ownership, November 2019
- Personal wealth is a major factor impacting on car ownership
- Car ownership is growing
-
- Figure 43: Car ownership, 2015-19
Age of Car Owned
-
- A majority of cars in ownership were purchased from new
-
- Figure 44: Age of car owned, November 2019
- Wealth strongly favours the recent purchase of a new car
- Young adults are more likely to have purchased in the last two years
- New cars are popular in London
- Men prefer to buy new
- Sluggish recent sales of new cars evident in ownership data
-
- Figure 45: Age of car owned, 2015-19
Other Access to Cars
-
- Around six out of 10 of non-car owners don’t hold a driving licence
-
- Figure 46: Other access to cars, November 2019
- Women are more likely to not hold a driving licence
- Potential market for car purchasers is significant
Type of Vehicle Owned
-
- Smaller cars are preferred
-
- Figure 47: Type of car owned, November 2019
- Smaller cars are popular with women
- Opportunities exist to exploit young car owners
- Wealth favours the ownership of large, luxury and specialist vehicles
- New cars purchased recently mirror wider trends towards specific categories
- Large cars and SUVs appeal to those with specific demands
- SUVs represent the most dynamic segment of the market
-
- Figure 48: Type of car owned, 2016- 19
Reasons to use a Car
-
- Commuting is ranked as the main use for a car
-
- Figure 49: Reasons to use a car, November 2019
- Young and old have different uses for a car
- Rural and urban car owners want different things
- New and used owners have different priorities for their cars
- Growing interest in SUVs fits with stronger leisure demands
Sources of Information
-
- Digital dominates when it comes to information on cars
-
- Figure 50: Sources of information, November 2019
- Young adults favour a wider range of information sources
- City dwellers are likely to rely on less popular channels
- Television, digital and printed publications divide the market
- Information is important for new car buyers…
- … with owners of small and large vehicles likely to use different channels
- Repertoire analysis suggests young men favour multiple sources
- Television losing out as interest in other media broadens
-
- Figure 51: Sources of information, 2017-19
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Data sources
- Exclusions
- Market sizing and segment performance
- Abbreviations
- Consumer research methodology
Back to top