The new car market could rise 2% in 2025 from an estimated 1.94 million registrations to 1.98 million, according to Auto Trader. The new car market will be 14% below the 2.31m new car registrations recorded in pre-pandemic 2019.
Attracting new customers will be critical for success in light of stricter regulatory targets, uncertain brand loyalty, and growth of marques and models.
Auto Trader’s commercial director, Ian Plummer, said: “It’s been another landmark year for automotive retailing, one that’s included a range of challenges, not least the introduction of ZEV targets, constrained supply, changing finance rules, and the budget, but also exceptionally strong used car demand, record levels of engagement on our platform, rapid speed of sale, and the stabilising of retail prices.
“And with the more attractively priced and available stock in recent months helping to fuel new car interest, the overall retail market is entering 2025 on a strong footing.”
New car supply has returned, retail demand for new EVs has eased, and ZEV targets have been introduced, all resulting in a return to a ‘push’ market.
As well as a smaller market, partly attributed to the recent increase in new car prices, established players will face tougher competition as an additional 17 automotive brands (81 models) vie for supremacy in 2025 compared to 2019.
Plummer concluded: “2025 is set for growth, but this year’s complexities will remain, and in some cases, tighten, particularly within the new car market, where a rapidly growing array of brands will be competing for the attention of an increasingly fickle new EV buyer.
“Brands and retailers alike cannot afford to standstill and will need to adopt a conquest mindset next year, as well as focusing on what they can excel at – delivering great product, a great experience, and a great performance, all of which we’ll continue to support through our technology, data and our investments.”