Table of Contents
Executive Summary
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- The market
- New and used sales show strong performance
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- Figure 1: UK new car sales, by volume, 2010-20
- Dual and multipurpose vehicles exerting challenge on status quo
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- Figure 2: New car registrations by broad segment (share), 2010-15
- Car parc supports large number of vehicles
- Companies, brands and innovation
- A highly fragmented market
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- Figure 3: Attitudes towards and usage of selected brands, November 2015
- Investment in advertising remains largely stable
- Technology at the forefront of current innovations
- The consumer
- Used cars have a stronger profile in the market
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- Figure 4: Type and age of car owned, December 2015
- Savings are the main way of buying a car
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- Figure 5: Paying for a car, December 2015
- Dealers and garages are an important source for ideas
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- Figure 6: Sources for ideas when purchasing, December 2015
- Online dominant for all but final decision making
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- Figure 7: Use of online sources and dealer/garage services when purchasing, December 2015
- Customer service is important for buyers
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- Figure 8: Attitudes towards car purchasing and ownership, December 2015
- Alternatives to car ownership receive a mixed reception
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- Figure 9: Alternatives to car ownership, December 2015
- What we think
Issues and Insights
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- Moving away from a one-size-fits-all approach to marketing
- The facts
- The implications
- Use of sub brands to offer distinction within the market
- The facts
- The implications
- AFV sales start to take off
- The facts
- The implications
The Market – What You Need to Know
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- Annual car sales surge to near 10 million
- Dual and multipurpose vehicles popular with buyers
- Interest in alternative fuelled vehicles strengths
- UK car parc supports wide range of vehicles by age
- Falling costs are helping buyers and owners
Market Size and Forecast
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- Growth in sales results in market reaching all-time high
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- Figure 10: Best- and worst-case forecasts for UK new and used sales, 2010-20
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- Figure 11: UK new and used sales, 2010-20
Segment Performance
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- Used sales dominate despite buoyant new car sector
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- Figure 12: New and used car market volumes, 2010-15
- Dual and multipurpose vehicles record strong sales …
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- Figure 13: New car registrations, by broad segment, 2010-15
- … to account for one in five new car sales
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- Figure 14: New car registrations by broad segment (share), 2010-15
- Fragmentation evident during the past decade
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- Figure 15: New car registrations by category, 2005, 2010 and 2015
- Progress made by diesel stalls as AFVs gain wider acceptance
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- Figure 16: Sales of cars by fuel type, 2010-15
Market Drivers
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- Age of car parc is broadening
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- Figure 17: Age structure of the car parc in years, 2012, 2013 and 2014
- Interest in future purchasing is focused on wealthy and young adults
- A fall in distance travelled is also evident
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- Figure 18: Trips, distance travelled and time taken, 2004-2014
- Cars favoured for commuting and shopping
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- Figure 19: Importance of transport types by specific reasons for travelling, 2014
- Used car prices tumble …
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- Figure 20: Price indices of new and used cars, 2004-15
- … as does the price of fuel
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- Figure 21: Typical retail prices of petroleum products in the UK, Jan 2013-Nov 2015
- Other factors influencing the market
- Number of larger households increases steadily
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- Figure 22: Changes in single and multi-person households, 2006-15
Key Players – What You Need to Know
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- A highly fragmented market
- Supermini and lower medium models are the most popular
- BMW and Audi stand out as exclusive brands
- Other European brands suffer from mixed fortunes
- Advertising expenditure shows signs of recent fluctuations
Market Share
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- Ford and Vauxhall slump to less than 23% of the new car market
- Many other established names also failing to make progress
- Nissan, Mercedes-Benz, Audi and BMW are the big winners
- Some manufacturers benefit from a turnaround in sales
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- Figure 23: Manufacturer shares of new car registrations, 2009, 2011, 2013 and 2015
- Standalone brands further complicate the market
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- Figure 24: Selected standalone brand sales, 2013-15
- Smaller cars prove most popular with buyers …
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- Figure 25: Top 10 car models, 2015
- … with no evidence of this changing
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- Figure 26: Top 10 car segments, 2010 and 2015
Brand Research
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- Brand map: Not all brands are perceived the same
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- Figure 27: Attitudes towards and usage of selected car brands, November 2015
- Key brand metrics: BMW and Audi score well
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- Figure 28: Key metrics for selected car brands, November 2015
- Brand attitudes: Quality, value and trust help some brands stand out
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- Figure 29: Attitudes, by car brand, November 2015
- Brand personality (macro): Brands like BMW, Audi and Mini stand out from the crowd
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- Figure 30: Car brand personality – Macro image, November 2015
- Brand personality (micro): Many established brands have neutral or negative traits
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- Figure 31: Car brand personality – Micro image, November 2015
- Brand analysis
- BMW and Audi stand out as exclusive brands
- Mini offers something different
- Honda, Toyota and Nissan are trusted
- European brands express various qualities
Advertising and Marketing Activity
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- Sector advertising spend up 6.9% in 2015
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- Figure 32: Recorded above-the-line, online display and direct mail total advertising expenditure by car manufacturers, 2011-15
- Family cars account for nearly a quarter of the sector’s advertising spend
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- Figure 33: Recorded above-the-line, online display and direct mail total advertising expenditure, by type of car, 2011-15
- Ford regains top spot
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- Figure 34: Recorded above-the-line, online display and direct mail total advertising expenditure by leading car manufacturers, 2011-15
- Majority of adspend channelled through TV
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- Figure 35: Percentage media type split of recorded above-the-line, online display and direct mail total advertising expenditure by car manufacturers, 2011-15
- A note on adspend
Launch Activity and Innovation
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- Personalised virtual car design and the connected car
- Panoramic windscreen, automatic boot opening and new braking safety feature
- Alternative-fuelled cars
- Reimagining the car experience
The Consumer – What You Need to Know
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- Two thirds of adults own a car
- Cars bought used have stronger profile amongst those owned
- Savings are the most popular way of paying for a car
- Dealers and garages are most important sources for information
- Online dominates most stages of the decision making process
- Three quarters of drivers expect good customer service
- Over half of adults have no interest in alternatives to car ownership
Car Ownership
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- Two thirds of adults own a car
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- Figure 36: Car ownership, December 2015
- Various factors typify those who are more likely to own a car
- Car owners are likely to favour traditional alternatives to non ownership
- Cars purchased second hand account a larger section of the market
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- Figure 37: Type and age of car owned, December 2015
- Men and young adults favour new cars
- Income appears to be a major factor in buying process
- Many recent buyers of new vehicles come from urban areas … and Scotland
- One in 10 who don’t own a car have access to another vehicle
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- Figure 38: Reasons for not owning a car, December 2015
Paying for a Car
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- Cash or part exchange of a vehicle are by far the most popular choices
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- Figure 39: Paying for a car, December 2015
- Young adults and urban buyers attracted by variety of payment choices
- Savings popular with older and rural buyers
- Employed and self-employed buy cars differently
- Buyers of new and used vehicles have preferences for particular payment methods
- Three quarters of owners rely on only one form of payment
Sources for Ideas when Purchasing
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- Dealers dominate when looking for ideas
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- Figure 40: Sources for ideas when purchasing, December 2015
- Men and older adults hold strong preferences
- Wealthier individuals are more likely to consult a variety of sources
- Buyers of new and used cars rely on different sources of information
- Women and the less affluent tend to limit themselves when sourcing ideas
Online versus Dealer/Garage when Purchasing
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- Online dominates in early stages of buying process
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- Figure 41: Use of on line sources and dealer/garage services when purchasing, December 2015
- Older adults prefer to use the services of dealers and garages …
- … as do those in rural areas
- Dealers are important for new car buyers but online for those buying used
- Online is important in the early stages of decision making
Attitudes towards Car Purchasing and Ownership
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- Benefits from buying and owning car are of most interest
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- Figure 42: Attitudes towards car purchasing and ownership, December 2015
- Car owners in the 25-34 age band appear most demanding
- Urban drivers also show strong interest in technology, functionality and the environment
- Wealthiest want more
- New car buyers are more receptive to innovation
- Interest in use of advertising by consumers varies
- Four groups of buyers are identified
Alternatives to Car Ownership
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- Car hire and car sharing are popular choices
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- Figure 43: Alternatives to car ownership, December 2015
- Young men are a key target market
- Alternatives to car ownership perform better in urban areas
- Income appears to play a major role in interest
- New car buyers are more receptive to alternatives
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data Sources
- Exclusions
- Market sizing and segment performance
- Fan chart forecast
- Abbreviations
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