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 sales fall for second consecutive year
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- Figure 1: UK new and used car sales, by volume, 2013-23
- New car sales have fallen more than those in the used sector since 2016
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- Figure 2: New and used car market volumes, 2013-18
- Mini/supermini segment suffers a dramatic fall in its profile
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- Figure 3: New car registrations by broad segment (share), 2013 and 2018
- Diesel cars account for a much reduced share of new sales
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- Figure 4: Sales of new cars by fuel type, 2013 and 2018
- Companies and brands
- Mass market manufacturers lose out as buyers trade up
- Premium brands offer the best combination of trust and differentiation
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- Figure 5: Attitudes towards and usage of selected brands, December 2018
- Fall in advertising expenditure reflects wider difficulties for the car market
- Automation dominates innovation
- The consumer
- Over 7 out of 10 adults own a car
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- Figure 6: Car ownership, November 2018
- The majority of cars in ownership are used
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- Figure 7: Age of car owned, November 2018
- Most without a car also don’t possess a driving licence
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- Figure 8: Other access to cars, November 2018
- Nearly 6 out of 10 car owners have a small or medium-sized vehicle
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- Figure 9: Type of car owned, November 2018
- Environmental concerns are most likely to put off purchasing a diesel car
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- Figure 10: Concerns about diesel, November 2018
- Digital is the main source for information on cars
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- Figure 11: Sources of information, November 2018
- Less than 1 in 10 adults is interested in a fully autonomous car
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- Figure 12: Autonomous driving, November 2018
- What we think
Issues and Insights
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- What next for the car market?
- The facts
- The implications
- Interest in diesel collapses amongst new car buyers
- The facts
- The implications
- Overall interest in autonomous vehicles is low
- The facts
- The implications
The Market – What You Need to Know
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- Car market is expected to see mixed fortunes going forward
- Car ownership polarises between new and old vehicles
- Car ownership varies by location and wealth
- Franchised dealers are the most important route for car buyers
- Cars dominate for trips over 1 mile
Market Size and Forecast
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- Car sales set to continue to decline in 2018
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- Figure 13: UK new and used car sales, by volume, 2013-23
- Figure 14: Best- and worst-case forecasts for UK new and used sales, 2013-23
- Forecast methodology
Market Segmentation
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- Car sales heading downward
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- Figure 15: New and used car market volumes, 2013-18
- Nearly a quarter of cars are 12 years or older
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- Figure 16: Age structure of the UK car parc in years, 2013-17
- Increase in second car ownership offers opportunities for the market
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- Figure 17: Percentage of households with car availability, England, 2007-17
- Car ownership varies across the country
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- Figure 18: Household car ownership by region (England), 2006/07 and 2016/17
- Wealthiest are more likely to own more than one car
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- Figure 19: Percentage of households with cars by income group (United Kingdom), 2016/17
- Dual and multipurpose vehicles perform best in what is a declining market…
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- Figure 20: New car registrations, by broad segment, 2013-18
- …as the mini/supermini segment suffers a fall in its profile
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- Figure 21: New car registrations by broad segment (share), 2013-18
- Dual-purpose cars are now the third most important category in the market
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- Figure 22: New car registrations by category, 2015, 2016 and 2017
- Diesel sales fall to less than a third of new vehicles …
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- Figure 23: Sales of new cars by fuel type, 2013-18
- …but continue to challenge petrol in the overall car market
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- Figure 24: Number of licensed cars (Great Britain), million units, 2013-18
Channels to Market
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- Franchised dealers benefit from recent buoyant new car sales
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- Figure 25: Sales of new and used cars, by channel, 2013-17
Market Drivers
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- Older licence holders are more likely to be men
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- Figure 26: Full car driving licence holders by age and gender, England, 2017
- Trips taken each year are down if walking is excluded
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- Figure 27: Trips, distance travelled and time taken, England, 2007-17
- Cars dominate for trips over 1 mile
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- Figure 28: Mode share of trips by main mode (different trip lengths), England, 2017
- Rising costs hit those owning and using a car
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- Figure 29: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2013-17
- Over half of adults plan to buy a car in the next 3 years
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- Figure 30: Do you or someone else in your household plan to buy a car(s) within the next 3 years, November 2018
- Buying new dominates although used is growing its share
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- Figure 31: Intention of purchasing a car/s in the next three years, by new or used/second-hand purchase, November 2018
- London leads with growing restrictions on using vehicles in cities
- Electric and hybrid cars are growing their share of the market
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- Figure 32: Hybrid and electric new car registrations (Great Britain), by volume, 2013-23
Companies and Brands – What You Need to Know
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- Mass market manufacturers suffer from fall in share
- Automation is a focus of activity by car manufacturers
- Advertising support falls back after peaking in 2016
- Brands occupy distinct positions within the market
Market Share
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- Mass market manufacturers suffer a fall in market share
- Mercedes-Benz is the best performing major brand
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- Figure 33: Manufacturer shares of new car registrations, 2012, 2014, 2016 and 2018
- Small cars dominate the new car market
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- Figure 34: Top 10 new car models, 2018
- Ford Fiesta leads used car market
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- Figure 35: Top 10 used car models, 201
Launch Activity and Innovation
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- Hyundai explores holographic augmented reality
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- Figure 36: WayRay holographic augmented reality technology, January 2019
- Ford looks at the development of smarter systems for European cities …
- …as well as broadening activity outside of the automotive sector
- Volvo pushes towards sustainability
- Volkswagen partners with Microsoft to offer new IoT platform
- Audi announces plans for 5G-connected cars
Advertising and Marketing Activity
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- Advertising support down since peaking in 2016
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- Figure 37: Recorded above-the-line, online display and direct mail total advertising expenditure by car manufacturers, 2014-18
- 4x4s and SUVs now dominate category expenditure
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- Figure 38: Recorded above-the-line, online display and direct mail total advertising expenditure, by type of car, 2014-18
- Mass market manufacturers raise investment
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- Figure 39: Recorded above-the-line, online display and direct mail total advertising expenditure by leading car manufacturers, 2014-18
- Television re-asserts its dominance
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- Figure 40: Percentage media type split of recorded above-the-line, online display and direct mail total advertising expenditure by car manufacturers, 2014-18
- Nielsen Ad Intel coverage
Brand Research
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- Premium brands offer the best combination of trust and differentiation
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- Figure 41: Attitudes towards and usage of selected brands, December 2018
- Key brand metrics
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- Figure 42: Key metrics for selected brands, December 2018
- Brand attitudes: Tesla stands out as by far the most innovative brand in the market
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- Figure 43: Attitudes, by brand, December 2018
- Brand personality: Volkswagen’s unethical performance continues to affect the brand
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- Figure 44: Brand personality – Macro image, December 2018
- Brand personality: Far Eastern brands are associated with being user-friendly
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- Figure 45: Brand personality – Micro image, January 2018
The Consumer – What You Need to Know
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- 70% of adults own a car
- Men and young adults are important car buyers in the last 2 years
- Age, income and employment strongly affect non-car ownership
- Small and medium-sized cars are the most important sectors
- Environmental concerns are strongly associated with diesel
- Digital is a key channel for information on cars
- Less than 1 in 10 adults are interested in a car that can drive itself
Car Ownership
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- More than 7 out of 10 adults own a car
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- Figure 46: Car ownership, November 2018
- Wealth plays a major factor in car ownership
- Car ownership is gradually increasing
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- Figure 47: Car ownership, 2014-18
Age of Car Owned
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- Cars purchased used represent a bigger market
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- Figure 48: Age of car owned, November 2018
- Young and old adults focus on different market sectors
- Men are likely to buy new while women are more likely to buy used
- City residents favour buying new
- Wealth impacts strongly on new and used choice
- New car sales have benefitted most in recent years
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- Figure 49: Age of car owned, 2014-18
Other Access to Cars
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- The majority of those without a car don’t possess a driving licence
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- Figure 50: Other access to cars, November 2018
- Age is the most important factor for non-car ownership
- Older adults have the potential to become car owners
Type of Vehicle Owned
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- Car owners prefer smaller cars
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- Figure 51: Type of car owned, November 2018
- Women prefer smaller cars
- Specialist categories popular with those in rural areas
- Small and specialist cars popular with the most affluent
- SUVs are the star performer in the market
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- Figure 52: Type of car owned, 2014, 2016, 2018
Concerns about Diesel
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- Environmental worries dominate diesel concerns
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- Figure 53: Concerns about diesel, November 2018
- Environmental concerns are greatest amongst those in cities
- Costs of owning a diesel high amongst wealthier socio-economic groups
- Poor resale value is more important for older adults
- Parents with children are more aware of alternatives
- Repertoire analysis records interest of older adults, city dwellers and higher earners in having multiple concerns
- Alternative technologies to diesel are of interest for new car buyers
Sources of Information
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- Digital is the main source for information on cars
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- Figure 54: Sources of information, November 2018
- Young men access a wide range of channels for information on cars
- City residents shun digital communication
- Wealthy and affluent adults use a variety of channels
- Owners of new cars are most interested in information
- Digital is helping broaden communication
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- Figure 55: Sources of information, 2017 and 2018
Autonomous Driving
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- Less than 1 in 10 adults is interested in a fully autonomous car
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- Figure 56: Autonomous driving, November 2018
- Young men are most interested in automated cars
- Affluent adults are another important market
- Cities and rural environments illustrate strong contrasts
- Owners of new cars are most interest in autonomous driving
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 tables
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- Figure 57: New and used car market sales, by volume, 2013-23
- Figure 58: Forecast of new and used car sales, by volume – Best- and worst-case scenarios, 2018-23
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