Table of Contents
Introduction
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- Definitions
- Abbreviations
Executive Summary
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- The market
- New car sales on hold?
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- Figure 1: New car registrations, 2006-16
- Market factors
- Performance of UK economy not helping the sector
- Buyers become more individual...
- Companies, brands and innovation
- German and value brands benefiting the most
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- Figure 2: Attitudes towards and usage of brands in the car sector, March 2012
- Retailing trends
- The consumer
- Dealer network continues to contract
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- Figure 3: Where last car was purchased, March 2012
- Cost uppermost in consumers’ minds
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- Figure 4: Considerations when buying a car whether new or second-hand, March 2012
- Figure 5: Consumer attitudes towards car purchasing, March 2012
- What we think
Issues in the Market
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- Will new car sales return to 2006 levels?
- What interplay do new car sales have with the used sector?
- Are mass-market brands in long-term decline?
- Can car purchasing be made more enjoyable?
- What future for dealers?
Future Opportunities
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- Guiding Choice
- Cam Cam
Internal Market Environment
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- Key points
- Purchasers remain wary of buying a car in the current market...
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- Figure 6: New car registrations, 2006-11
- An ageing car parc
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- Figure 7: When current car was obtained, 2011
- Purchasing intentions unlikely to improve
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- Figure 8: Frequency of replacing the car, 2010 and 2011
- Lacklustre demand from those seeking to buy within coming two years
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- Figure 9: When planned to buy, 2011
- Dealers trying to stimulate sales
- Second-hand holds an important place amongst car owners…
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- Figure 10: Ownership of new and second-hand vehicles, 2011
- ... with this set to continue for future purchases
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- Figure 11: Intention to purchase new and second-hand vehicles, 2011
- Hatchbacks proving popular
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- Figure 12: Vehicle choice for those looking to purchase in the next 2 years, 2011
- Rising fuel prices make motoring increasingly expensive...
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- Figure 13: Monthly UK petrol diesel and oil price trends, 2009-12*
- Personal Contract Purchase proving popular
- Tax system focused towards less polluting cars
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- Figure 14: 12-month vehicle excise duty rates (on/after 1st April 2011)*
- Government support for ultra-low emission vehicles
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- Figure 15: Cars eligible for the Plug-in Car Grant 2012
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- Figure 16: Electric, hybrid and AFV sales*, 2010 and 2011
- Spouses play an important role when purchasing
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- Figure 17: Who decided on make and model, 2011
Broader Market Environment
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- Key points
- UK economy beginning to recover...
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- Figure 18: GDP, PDI, consumer expenditure and savings, at constant 2006 prices, 2006-16
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- Figure 19: GDP quarterly percentage change, Q1 2004-Q3 2011
- ... but consumer confidence remains shaky
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- Figure 20: GfK NOP Consumer Confidence Index, January 1988-December 2011
- Cars compete alongside many other areas for consumer expenditure
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- Figure 21: Consumer expenditure, by sector (£m), 2010
- Unemployment set to fall back between 2011 and 2016
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- Figure 22: Employment and unemployment, by gender, 2006-16
- Small car sales should benefit from growth in number of smaller households
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- Figure 23: Number of Households and persons per household, 2000-31 (proj)
- Increasing wealth should stimulate trading up when purchasing
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- Figure 24: Forecast adult population trends, by socio-economic group, 2006-16
- Mixed opportunities from population change
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- Figure 25: Trends in the age structure of the UK population, 2006-16
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Market Size and Forecast
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- Key points
- New car sales remain subdued
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- Figure 26: UK new registrations of motor vehicles, 2006-16
- New car scrappage scheme bolsters sales during 2009/10
- Business and fleet sales performing much better
- Forecast
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- Figure 27: UK new registrations of motor vehicles, 2006-16
- A health warning
Segment Performance
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- Key points
- Growth in sales of mini format cars
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- Figure 28: Sales of cars* by type, mini and medium size cars, 2006-11
- Executive cars also receiving strong interest
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- Figure 29: Sales of cars* by type, other cars, 2006-11
- Private buyers more likely to purchase supermini and 4x4/SUVs…
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- Figure 30: Sales of new vehicles, % share by purchaser type, 2011
- ... with a trend towards more specialist purchases generally
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- Figure 31: Share of vehicle types amongst private purchasers, 2010 and 2011
Market Shares
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- Key points
- German brands making good progress with purchasers
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- Figure 32: Manufacturer shares of new car registrations, 2009-11
- German brands grow share amongst new car buyers
- Lack of va va voom dents performance of French brands
- Are consumers looking for something different?
Retailing Trends
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- Key points
- Dealer network numbers in steady decline
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- Figure 33: Number of UK franchised dealer outlets, 2000 -11
- Pendragon dominates the overall dealer market
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- Figure 34: Top ten dealership groups in the UK*, 2011
- Arnold Clark and Pendragon lead amongst used car sales
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- Figure 35: Top ten used car dealership groups in the UK*, 2011
- The growing presence of car supermarkets
- A growing number of supermarkets boast multiple sites
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- Figure 36: Leading car supermarket operators, 2012
- Use of online tools becoming more commonplace when purchasing...
- ... but limited at the moment
Brand Communication and Promotion
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- Key points
- Promotional expenditure showing signs of recovery
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- Figure 37: Topline spend in the UK car market, 2008-11
- VW and Ford lead current investment
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- Figure 38: Top 20 car manufacturers in the UK, by advertising expenditure, 2008-11*
- Certain manufacturers signal intention to raise awareness of key brands
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- Figure 39: Top 20 car models in the UK, by advertising expenditure, 2011
- Internet growing in popularity
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- Figure 40: Advertising expenditure, by channel, 2008-11
- Figure 41: Advertising expenditure, by channel, 2008-11
Brand Research
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- Brand map
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- Figure 42: Attitudes towards and usage of brands in the car sector, March 2012
- Correspondence analysis
- Brand attitudes
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- Figure 43: Attitudes by car brand, March 2012
- Brand personality
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- Figure 44: Car brand personality – macro image, March 2011
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- Figure 45: Car brand personality – micro image, March 2012
- Brand experience
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- Figure 46: Car brand usage, March 2012
- Figure 47: Satisfaction with various car brands, March 2012
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- Figure 48: Consideration of car brands, March 2012
- Figure 49: Consumer perceptions of current car brand performance, March 2012
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- Figure 50: Car brand recommendation – Net Promoter Score, March 2012
- Brand index
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- Figure 51: Car brand index, March 2012
- Figure 52: Car brand index vs. recommendation, March 2012
- Target group analysis
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- Figure 53: Target groups, March 2012
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- Figure 54: Automotive brand usage, by target groups, March 2012
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
The Consumer – Key Considerations When Car Buying
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- Key points
- Price is most important to buyers
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- Figure 55: Considerations when buying a car whether new or second-hand, March 2012
- Price is crucial for those on lower incomes
- Older drivers focus on benefits while younger drivers on design and quality
- Londoners have different demands...
- ... as do those living in rural locations
- Are buyers becoming more demanding?
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- Figure 56: Considerations when buying a car, February 2011 v March 2012
- Costs are especially important to those buying used
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- Figure 57: Considerations when buying a car whether new or second-hand, by car buying plans, March 2012
- Certain non-price factors are more important to those spending more on a vehicle
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- Figure 58: Considerations when buying a car whether new or second-hand, by purchase price, March 2012
- Safety a factor for half of big spenders
- Costs and reliability dominate thinking for those spending less than £10,000
- Costs ... a postscript
The Consumer – The Purchasing Process
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- Key points
- Car purchasing process produces polarised views
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- Figure 59: Consumer attitudes towards car purchasing, March 2012
- Women find buying process stressful
- Men are more engaged in the buying process
- Is the internet helping young purchasers?
- Londoners find purchasing difficult
- Used buyers appear less confident
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- Figure 60: Consumer attitudes towards car purchasing, by car buying plans, March 2012
- Used buyers more likely to ask others for assistance
- New buyers are immersed in buying process
- Those who replace their cars least often are also less likely to enjoy purchasing
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- Figure 61: Consumer attitudes towards car purchasing, by car ownership, March 2012
- Car buyers can be split into three groups
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- Figure 62: Consumer attitudes towards car purchasing, by target groups, March 2012
- Group characteristics
- Reluctant Buyers (33%)
- Enthusiastic Buyers (39%)
- Savvy Buyers (28%)
The Consumer – Most Recent Car Purchase
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- Key points
- Car dealers dominate consumer thinking
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- Figure 63: Where last car was purchased, March 2012
- Older buyers go for main dealers
- Londoners opt to buy private
- Middle income drivers favour private purchases
- Main dealers dominate when it comes to new car sales
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- Figure 64: Where last car was purchased, by car buying plans, March 2012
- Private sellers and independents dominate the used market
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- Figure 65: Where last car was purchased, by purchase price, March 2012
The Consumer – Attitudes Towards Car Purchasing
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- Key points
- Low running costs and shopping around are both important to consumers
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- Figure 66: To what extent do you agree or disagree with the following statements, March 2012
- Cost and meeting specific needs most important
- A car is just a car to many motorists
- Few motorists are narrow minded
- Those buying new are more likely to look at particular features
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- Figure 67: To what extent do you agree or disagree with the following statements, by car buying plans, March 2012
- New and used buyers agree on costs and shopping
- New car buyers are more demanding
- Young adults are strongly attached to their cars
- Men are good target for luxury brands
- ... while women want practicality and safety
- Big spenders are more likely to want something specific
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- Figure 68: To what extent do you agree or disagree with the following statements, by car purchase price, March 2012
- Costs important to those spending least on a car
- Middle income purchasers look at other factors
- Big spenders – niche demands
Appendix – Brand Research
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- Figure 69: Brand usage, March 2012
- Figure 70: Brand commitment, March 2012
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- Figure 71: Brand momentum, March 2012
- Figure 72: Brand diversity, March 2012
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- Figure 73: Brand satisfaction, March 2012
- Figure 74: Brand recommendation, March 2012
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- Figure 75: Brand attitude, March 2012
- Figure 76: Brand image – macro image, March 2012
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- Figure 77: Brand image – micro image, March 2012
- Figure 78: Profile of target groups, by demographic, March 2012
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- Figure 79: Psychographic segmentation, by target group, March 2012
- Figure 80: Brand usage, by target group, March 2012
- Brand index
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- Figure 81: Brand index, March 2012
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Appendix – Consumer – Key Considerations When Car Buying
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- Figure 82: Most popular considerations when buying a car whether new or second-hand, by demographics, March 2012
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- Figure 83: Next most popular considerations when buying a car whether new or second-hand, by demographics, March 2012
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- Figure 84: Other considerations when buying a car whether new or second-hand, by demographics, March 2012
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Appendix – Consumer – The Purchasing Process
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- Figure 85: Most popular consumer attitudes towards car purchasing, by demographics, March 2012
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- Figure 86: Next most popular consumer attitudes towards car purchasing, by demographics, March 2012
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- Figure 87: Target groups, by demographics, March 2012
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Appendix – Consumer – Most Recent Car Purchases
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- Figure 88: Where last car was purchased, by demographics, March 2012
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Appendix – Consumer – Attitudes Towards Car Purchasing
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- Figure 89: Agreement with the statements ‘Shopping around is important to me’ and ‘A car with low running costs is important to me’, by demographics, March 2012
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- Figure 90: Agreement with the statements ‘I would consider buying an electric car or hybrid car as they are cheaper to run’ and ‘My car reflects my personality’, by demographics, March 2012
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- Figure 91: Agreement with the statements ‘I would spend a lot of time keeping my car looking as good as possible’ and ‘Practicality is more of a priority for me than performance’, by demographics, March 2012
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- Figure 92: Agreement with the statements ‘My car means a lot to me’ and ‘I would choose a car that suits my family’s needs over my own personal preference’, by demographics, March 2012
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- Figure 93: Agreement with the statements ‘I would only consider certain luxury brands’ and ‘I would only consider certain types of cars eg off roader/4x4’, by demographics, March 2012
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- Figure 94: Agreement with the statements ‘Safety features are more important to me than looks’ and ‘Being able to part exchange my old car is important to me’, by demographics, March 2012
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- Figure 95: Agreement with the statement ‘I worry about the impact of driving on the environment’, by demographics, March 2012
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