The automotive industry has been facing a myriad of challenges in recent years, from the impact of Covid to semiconductor chip shortages and the looming threat of fines for not meeting electric vehicle sales targets. Amidst this turmoil, the UK new car market has undergone significant changes, becoming more competitive than ever before.
According to recent research from Auto Trader, the number of brands and models in the UK market has increased significantly since 2019. In 2019, there were 50 brands and 455 models, while this year there are 56 brands and 486 models. This increase in options has made it harder for car buyers to remain loyal to a single brand, especially when it comes to electric vehicles.
Historically, 36% of car buyers would stick with their current brand for their next purchase, but for EVs, that number has dropped to just 19%. This shift in consumer behavior has made it challenging for new entrants in the market to gain traction. Brands like BYD, Great Wall, and Omoda have struggled to increase awareness and interest, despite offering electric models.
Interestingly, established car makers are also facing challenges in brand recognition as they transition to electric vehicles. While models like the Ford Focus, Volkswagen Golf, and Audi A3 have strong brand associations, newer electric models like the Audi E-tron and Volkswagen ID 3 have lower recognition levels. This shift in consumer perception highlights the difficulties legacy car makers are facing in the EV market.
The rapid pace of change in the automotive industry is further exemplified by the turnover in the most popular models on Auto Trader’s listings. Only a few models from last year’s top 10 have remained popular in 2024, with new electric models like the Hyundai Ioniq 5 and MG 4 gaining traction. This constant evolution in the market means that car manufacturers must stay agile and innovative to meet changing consumer preferences.
In conclusion, the UK new car market is more competitive than ever, with a growing number of brands and models vying for a shrinking pool of buyers. Consumer loyalty is waning, and new entrants face an uphill battle to establish themselves in the market. As the industry continues to evolve towards electric vehicles, car manufacturers must adapt to meet the changing demands of consumers.
