Registrations of new cars still not at pre-pandemic levels
The new car market is expected to remain at just under 2 million registrations next year, Auto Trader analysis has revealed. It predicts 1.98 million new car registrations, a 2% rise from 1.94 million. With manufacturers and retailers facing challenging regulations, uncertain brand loyalty, and more makes and models than ever before hoping for a share of the market, attracting new customers “will be critical for success.”
While it will be the fourth consecutive year for growth, the new car market will still be 14% below the 2.31 million registrations in 2019, before the pandemic. “Since the atypical years of 2021 and 2022, new car supply has returned, retail demand for new electric vehicles (EV) has eased, and Zero Emission Vehicle (ZEV) targets have been introduced,” Auto Trader has said. “As a result, 2024 saw a return to ‘push’ dynamics, albeit to a lesser extent than pre-pandemic levels, with discounts rising to 9% in October, up from 7.4% 12 months earlier.”
This, and market investment, have helped to stimulate interest in consumers. The market share for EVs, is predicted to only reach 18%, short of the 22% ZEV requirement. With registrations sales at an estimated 740,000, and private new car sales predicted to fall by 27%, this is the lowest level in two decades.
The recent increase in new car costs has also played a part (£31,000 to £43,020 since 2019). Established players, Auto Trader says, will face tougher competition. There have been an additional 17 automotive brands and 81 models all battling for supremacy in the market in 2025 compared with 2019. It will require brand equity to keep consumers familiar with the growing selection of new electric models.
And with an increase in ZEV targets, and buyer being open to new options, new car buyers research an average of 17 brands, manufacturers as well as retailers will have to focus on convincing the public to go electric.
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