Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Car market showing signs of stagnation
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- Figure 1: UK new and used car sales, by volume, 2012-22
- Slowdown in sales is evident in both segments of the market
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- Figure 2: New and used car market volumes, 2012-17
- Dual and multipurpose vehicles are growing their share of the market
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- Figure 3: New car registrations by broad segment (share), 2012 and 2017
- Costs of motoring are rising
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- Figure 4: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2012 and 2016
- Companies and brands
- Established manufacturers are losing ground
- Not all brands are viewed equally
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- Figure 5: Attitudes towards and usage of selected brands, January 2018
- Advertising spend also showing evidence of stagnation
- Innovation remains a key area for manufacturers
- The consumer
- Car ownership stands at 70%
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- Figure 6: Car ownership, December 2017
- Used cars represent a larger part of the market
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- Figure 7: Age of car owned, December 2017
- Most adults who don’t own a car also don’t drive
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- Figure 8: Non-car ownership, December 2017
- Small and medium-sized vehicles are popular
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- Figure 9: Type of Car Owned, December 2017
- Shopping is the most important use for a car
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- Figure 10: Reasons for using a car, December 2017
- Digital dominates as a source of information
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- Figure 11: Sources of information, December 2017
- Car hire and car sharing are the popular alternatives
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- Figure 12: Alternatives to car ownership, December 2017
- What we think
Issues and Insights
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- 2017 sees new car market volumes decline as used sector stalls
- The facts
- The implications
- SUVs/4x4 cars are set to continue to grow their share of the market
- The facts
- The implications
- Digital as a communication channel shouldn’t be overlooked
- The facts
- The implications
The Market – What You Need to Know
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- After peaking in 2016 new and used car sales are now in decline
- New car sales have been hit hardest by slowdown in demand
- Levels of car ownership are growing strongest in the North of England
- Despite a falling share of new car sales, diesel continues to grow its overall share
- Franchised dominate as the most important sales channel
- Costs of motoring spiral upwards during 2016
Market Size and Forecast
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- After peaking in 2016 sales will start to fall back in 2017
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- Figure 13: UK new and used car sales, by volume, 2012-22
- Figure 14: Best- and worst-case forecasts for UK new and used sales, 2012-22
- Forecast methodology
Market Segmentation
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- Stagnation begins to impact on both new and used segments
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- Figure 15: New and used car market volumes, 2012-17
- Nearly a quarter of cars on the road are now 10 years or older
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- Figure 16: Age structure of the car parc in years, 2012, 2014 and 2016
- Two thirds of households own two or more cars
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- Figure 17: Percentage of households with car availability, in England, 2006-16
- Car ownership growing strongest in the North of England
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- Figure 18: Household car ownership by region (England), 2002/03 and 2014/15
- Dual and multipurpose vehicles benefit from increased interest …
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- Figure 19: New car registrations, by broad segment, 2012-17
- … accounting for over a fifth of new car sales in 2017
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- Figure 20: New car registrations by broad segment (share), 2012-17
- Dual purpose is clear winner as a number of other categories fall out of favour
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- Figure 21: New car registrations by category, 2010, 2015 and 2016
- Concerns about diesel sees surge in demand for petrol …
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- Figure 22: Sales of new cars by fuel type, 2012-17
- … although diesel continues to grow its share overall
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- Figure 23: Fuel use within the car parc, 2012-16
Channels to Market
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- Franchised dealers benefit from recent buoyant new car sales
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- Figure 24: Sales of new and used cars, by channel, 2013-17
Market Drivers
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- Men are more likely to hold a driving licence
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- Figure 25: Full car driving licence holders, England, 2016
- Costs of motoring spirals upwards during 2016…
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- Figure 26: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2012-16
- … with revised VED rates for new cars adding further pressure on buyers of new cars
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- Figure 27: VED rates, April 2017
- Distance travelled and number of trips showing signs of growth
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- Figure 28: Trips, distance travelled and time taken, England, 2006-16
- Cars still dominate when compared to other transport options
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- Figure 29: Mode share (average distance travelled), England, 2015
- Cars favoured for business, commuting and shopping …
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- Figure 30: Percentage of trips made by transport type (England), 2016
- … with a near universal spread of their use by age
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- Figure 31: Mode share (average distance travelled), England, 2016
- More consumers plan to buy than not buy a car in the next 3 years
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- Figure 32: Do you or someone else in your household plan to buy a car(s) within the next 3 years, December 2017
- Buying new is the preferred choice for many potential purchasers
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- Figure 33: Intention of purchasing a car/s in the next three years, by new or second-hand purchase, December 2017
- Hybrid and electric cars set to play a greater part in the market
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- Figure 34: Hybrid and electric new car registrations (Great Britain), by volume*, 2011-21
- Number of larger households continues to increase
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- Figure 35: Percent of households, United Kingdom, 2007 and 2017
- The UK’s population is expected to age
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- Figure 36: Trends in the age structure of the UK population, 2011-21
Companies and Brands – What You Need to Know
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- A market in flux
- All things electric
- Promotional support remains high
- A number of brands are positioned well within the market
Market Share
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- Big players suffer fall in share with Vauxhall performing the worst
- Mercedes-Benz typical of the premium marques performing well
- Innovative manufacturers are also making good progress
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- Figure 37: Manufacturer shares of new car registrations, 2011, 2013, 2015 and 2017
- Executive models challenge traditional top 10 hierarchy
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- Figure 38: Top 10 new car models, 2017
- Established models continue to dominate the used car market
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- Figure 39: Top 10 used car models, 2017
Launch Activity and Innovation
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- Dyson set to launch electric car in 2020
- Nissan brain to vehicle technology
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- Figure 40: Nissan Brain to Vehicle Technology
- Volvo becomes the first major car manufacturer to go electric
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- Figure 41: Volvo mild hybrid 48 volt technology
- Chinese start-up offers cross between car and smartphone
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- Figure 42: Byton interior view
Advertising and Marketing Activity
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- Promotional expenditure remains high
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- Figure 43: Recorded above-the-line, online display and direct mail total advertising expenditure by car manufacturers, 2013-17
- Support for the 4x4 categories results in it becoming the largest market
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- Figure 44: Recorded above-the-line, online display and direct mail total advertising expenditure, by type of car, 2013-17
- Company ambitions often influence promotional investment
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- Figure 45: Recorded above-the-line, online display and direct mail total advertising expenditure by leading car manufacturers, 2013-17
- Digital grows its share to challenge television
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- Figure 46: Percentage media type split of recorded above-the-line, online display and direct mail total advertising expenditure by car manufacturers, 2013-17
- Nielsen Ad Intel coverage
Brand Research
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- Premium brands and Ford score well
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- Figure 47: Attitudes towards and usage of selected brands, January 2018
- Key brand metrics
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- Figure 48: Key metrics for selected brands, January 2018
- Brand attitudes: Asian brands offer good value while premium marques offer quality
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- Figure 49: Attitudes, by brand, January 2018
- Brand personality: Many major brands are viewed as having particular personalities
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- Figure 50: Brand personality – macro image, January 2018
- Many mass-market brands are viewed as user friendly
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- Figure 51: Brand personality – micro image, January 2018
The Consumer – What You Need to Know
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- Car ownership stands at 70%
- Used cars are more prevalent than new cars
- Most non-car owners don’t drive
- Small and medium-sized vehicles are most popular with car owners
- Shopping is a key reason for using a car
- Digital dominates as a source of information
- Car hire and car sharing are popular alternatives to ownership
Car Ownership
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- Car ownership stands at 70%
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- Figure 52: Car ownership, December 2017
- Large families and income are key in influencing car ownership
- Car ownership appears to have stagnated since 2016
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- Figure 53: Car ownership, 2014-2017
Age of Car Owned
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- Used cars are more popular than new cars
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- Figure 54: Age of car owned, December 2017
- Affluence has a strong impact on ownership of new cars
- Age impacts on choice
- Men are important owners of new cars
- Londoners prefer to buy new
- As with ownership, new car purchases within the last two years has also stalled
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- Figure 55: Age of Car Owned, 2014-2017
Non-Car Ownership
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- Most non-car owners don’t drive
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- Figure 56: Non-car ownership, December 2017
- Age, gender and affluence are all associated with not owning a car
Type of Car Owned
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- Small and medium-sized vehicles are most popular with car owners
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- Figure 57: Type of Car Owned, December 2017
- Young adults have particular preferences
- Men look for a larger vehicle
- Affluent want more specialist vehicles
- Compact cars and SUVs are especially popular with new car buyers…
- …boosting their share of ownership
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- Figure 58: Type of car owned, 2014, 2016 and 2017
Reasons for Using a Car
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- Shopping is a key reason for using a car
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- Figure 59: Reasons for using a car, December 2017
- Young and old have different demands from a car
- Commuting is a feature for the most affluent car owners
- Cars purchased in the last two years are more likely to be used for commuting
Sources of Information
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- Digital dominates as a source of information
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- Figure 60: Sources of information, December 2017
- Young men show most interest in information on cars
- Demands from urban areas necessitate a broad communication strategy
- Publications are popular with the A socio economic group
- Repertoire analysis notes interest of young men and affluent adults in multiple channels
- Car owners show a strong preference for particular channels …
- … with this especially true of new car owners
Alternatives to Car Ownership
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- Car hire and car sharing are the popular alternatives
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- Figure 61: Alternatives to car ownership, December 2017
- Young adults are a key target
- Affluence plays a major factor
- Interest in alternatives is highest in urban areas
- Older adults are likely to consider a variety of alternatives
- Alternatives are of less interest to non-car owners
- Owners of recently purchased cars are an important target
- Interest in alternatives to car ownership is growing
- Car sharing economy
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- Figure 62: Alternatives to car ownership, 2015 and 2017
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data Sources
- Exclusions
- Market sizing and segment performance
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Forecast methodology
- Forecast Tables
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- Figure 63: New and used car market sales, by volume, 2012-22
- Figure 64: Forecast of new and used car sales, by volume – best- and worst-case scenarios, 2017-22
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