UK Car Review - UK - February 2020
Overview
 
What you need to know 
The UK car market continues to disappoint. Both new and used sales are in decline with the recent performance of the new car sector of particular concern for manufacturers. Combined new and used sales were down at 9.95 million units in 2019, to put the market only 3% ahead of its level in 2014. Although forecasts for the period 2019-24 are hopeful, with sales expected to reach 10.75 million units, conditions are set to remain challenging with a better understanding of car buyer demands likely to be critical for those that wish to maximise opportunities. 

Within the market, evidence of changing needs is widespread. SUVs continue to make sustained progress as the large vehicle of choice and the main alternative to smaller cars. Diesel as a fuel for new cars has seen its popularity collapse, thus assisting with developing the market for hybrid-electric and fully electric cars. Yet it is some of the coming changes on the regulatory side that may have the greatest impact on the future of the sector. Concerns over air quality are seeing local restrictions in cities such as London being increasingly replicated outside of the capital. The outcome of such developments is likely to be an increasingly different role for the car. 

Mintel’s research for this Report gives an idea of where the market is moving. Trading up is increasingly being pursued with evidence that this is leading to increased interest in luxury cars from some younger age groups. Outside of the premium sector, buyers are increasingly looking for value as well as flexibility in the uses they can put their vehicles. Many are seeking out information from emerging channels such as digital media when it comes to the buying process, although it remains the fact that a sizeable minority, 30%, still claim to bypass this process. 

Products covered in this Report
This Report investigates the changing face of the UK car market. It focuses on developments that are taking place within the car market and how these are impacting now and are likely to impact on the future demands of buyers. It presents a review of the UK market for passenger vehicles and the dynamics of the sector, as well as reviewing trends in areas such as category and brand share.

It is exclusively focused on passenger vehicles, and therefore excludes any discussion of the market for light commercial vehicles.