2026
9
UK Car Review: 2026
2026-03-02T12:01:53+00:00
REPB7391FA5_3232_4B96_B91F_A53232AB9606
2195
191600
[{"name":"Automotive","url":"https:\/\/store.mintel.com\/industries\/automotive"},{"name":"Market Intelligence Reports","url":"https:\/\/store.mintel.com\/report-type\/market-intelligence-reports"},{"name":"UK","url":"https:\/\/store.mintel.com\/markets\/uk-market-research"}]
Report
en_GB
The UK car market is undergoing significant changes, with a clear shift toward small to medium-sized vehicles.  Used vehicles continue to dominate the landscape with a 79.5% market share, underscoring…
UK
Automotive
simple

UK Car Review: 2026

"As mid-sized and small cars stay popular, buyers seek value, quality, and fuel efficiency. Digital marketing is now the best way for brands to showcase these benefits."

Utku Tansel, Senior Retail Analyst

Utku Tansel, Senior Retail Analyst

The UK car market is undergoing significant changes, with a clear shift toward small to medium-sized vehicles.  Used vehicles continue to dominate the landscape with a 79.5% market share, underscoring a prevailing consumer focus on value; driven by consumer confidence which remains split, influencing big-ticket purchases like cars. B-EVs reach a record 23.4% share, supported by government incentives and shifting consumer priorities, particularly in the face of ongoing inflation.

Affordability (51%) and quality (49%) remain the top factors influencing purchase decisions. This creates a significant opportunity for “affordable electrification,” particularly within the finance and used-EV sectors. Traditional car ownership is still the preferred choice for 65% of consumers, while leasing is up to 40% among 17-34s.

Government ZEV mandate and tax changes are the biggest industry-wide disruptors. Pay-per-mile taxation and supply-chain strain are the biggest threats that could slow EV momentum.

Safety features are a high priority for buyers, with 77% seeking cars equipped with safety assist technology, while 47% express interest in autonomous driving features.

Digital platforms have emerged as powerful channels for car brands to convey value propositions effectively, with social media playing a pivotal role in reaching younger demographics.

This Report Looks at the Following Areas:

  • Emerging opportunities driven by the increasing demand for small and medium-sized cars
  • Key factors influencing car purchasing decisions, including price, quality, fuel efficiency, driving experience, brand reputation, safety features, environmental sustainability, and innovation
  • Strategic recommendations for market success, addressing ownership preferences such as outright purchases, leasing, short-term rentals, car sharing, and car club memberships
  • Comprehensive analysis of communication channels, from digital platforms to traditional mediums like TV, print, and outdoor advertising, highlighting the most effective strategies for maximising audience engagement
  • Insights into the rapid growth of the electric and hybrid car market, exploring evolving government policies, incentives, recent developments, and their wider implications for the industry

Market Definitions

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.

This Report specifically excludessales to businesses or operators of company car fleets although data for sales to all three markets is included where necessary.

Collapse All
  1. EXECUTIVE SUMMARY

    • What you need to know
    • Outlook for the UK car market
    • Opportunities
    • Enhance digital presence
    • Prioritise value and quality
    • Graph 1: most important factors when buying a car, 2025
    • Expand electric vehicle offerings
  2. THE MARKET

    • Snapshot – market size and forecast
    • Inflation still strains household budgets
    • Graph 2: CPI inflation rate, 2021-26
    • Consumer confidence outlook
    • Graph 3: consumers’ financial confidence over the next year or so, 2025
    • Fuel prices ease, still above pre-pandemic lows
    • Graph 4: unleaded petrol and diesel pump prices, 2018-26
    • The UK’s EV revolution: new rules, taxes and timelines
    • Car sales hit three-year growth streak in 2025
    • Graph 5: new and used car sales, by volume, 2020-25
    • Market size and forecast of the UK car market
    • Graph 6: market volume forecast for cars (new registrations and used sales), 2019-30
    • Used cars continue to dominate
    • Graph 7: new and used car sales, share of volumes, 2018/25
    • EV market share hits record high as petrol and diesel demand weakens
    • Graph 8: new cars market share, %, 2025
    • Dealers still dominate: unpacking car buying trends
    • Graph 9: where last car was purchased – top three channels, 2025
    • Graph 10: where last car was purchased – online options, 2024-25
    • Volkswagen pulls ahead of the pack
    • Graph 11: brand share, new cars – leading 10 brands, 2024 and 2025
  3. THE CONSUMER

    • Type of vehicle owned
    • Size matters: medium and small cars dominate the road
    • Mid-sized marvels: the new kings of the road
    • Graph 12: type of car owned, 2024 vs 2025
    • Stylish and affordable: smaller cars most popular with women
    • Graph 13: small saloon/hatchback car ownership, by gender and select age, 2025
    • Important factors when choosing a car
    • Price and quality: how consumers prioritise essentials
    • Price and quality: the driving factors in car buying decisions
    • Graph 14: most important factors when buying a car, 2024 vs 2025
    • Building trust and driving change: how car brands can win over savvy consumers
    • Meeting high expectations: why quality drives car purchases
    • Fuel efficiency: saving money and the planet
    • Graph 15: most important factors when buying a car – fuel efficiency, by age, 2025
    • Driving fun: the road to customer happiness
    • Ways of accessing a car
    • Purchase and outright ownership reign supreme
    • Purchase and outright car ownership still rule
    • Leasing gains popularity
    • Graph 16: ways of accessing a car – fixed-term lease (ie pay monthly with option to purchase or return car at end of lease term), by age, 2025
    • Alternative options are a bigger hit with younger consumers
    • Graph 17: select ways of accessing a car, by age, 2025
    • Preferred methods for communication
    • Digital and social media are the most popular mediums for information
    • Digital leads
    • Young cohort relies on social media for information about cars
    • Graph 18: social media as a preferred method of communication, by age, 2025
    • Driving impact: how car brands can maximise TV advertising in the digital age
    • Winning print advertising strategies for car brands to build trust
    • Interest in specific in-vehicle technologies
    • Consumers demand a variety of enhanced vehicle features
    • Consumers increasingly seek technological features that enhance safety, simplify diagnostics and offer intuitive control over in-car functions
    • Graph 19: interest in select enhanced vehicle features, 2025
    • Driving smarter: why safety features are the future of cars
    • Balancing convenience and safety in digital car interfaces
    • Graph 20: interest in digital screens for in-car functions, by age, 2025
    • Navigating the future: are self-driving cars ready to take the wheel?
  4. ADVERTISING AND MARKETING ACTIVITY

    • Car manufacturers ease off ad spend…
    • Graph 21: total advertising expenditure on cars, 2021-25*
    • …while dual-purpose cars maintain market grip
    • Graph 22: total advertising expenditure on cars, by category, 2025*
    • The shifting gears of car advertising
    • Graph 23: total advertising expenditure on cars, by media, 2023 and 2025*
    • Renault Austral promotes innovate technology with its E-Tech self-charging full hybrid
    • The Audi A6 Avant e-tron showcases its customisable features
    • Hyundai’s ‘Power your world’ campaign showcases the technological advancements of the fully electric IONIQ 9
    • Volkswagen highlights its luxurious comfort, and the long range of its electric vehicle for a road trip from the UK to Amsterdam
    • Dacia’s minimalist EV aims to make EVs more affordable and accessible
    • BMW builds on its legacy by linking its iconic heritage to modern innovation
  5. APPENDIX

    • Market definitions and exclusions
    • Data sources
    • The market
    • Forecast methodology
    • Forecast methodology – fan chart
    • Market forecast and prediction intervals (volume)
    • How top car brands invested big in advertising
    • The consumer
    • Consumer research questions
    • Consumer research methodology – EMEA
    • Other data source methodologies
    • Nielsen Ad Intel coverage
    • Abbreviations and terms

Market Intelligence Made Easier With Mintel

The first Mintel Market Intelligence report was published over 50 years ago. Since then, we have provided our unique insights and understanding of consumers, innovation and global markets to thousands of customers worldwide. Here’s why our customers rely on Mintel:

  • Gain a comprehensive, 360-degree view of the market: Mintel reports blend consumer research, market forecasts, product innovation tracking, and competitive analysis, allowing businesses to see every angle of their industry and identify new opportunities quickly.
  • Make decisions with confidence, grounded in robust data: Each report draws on up-to-date, reliable information from trusted sources and industry experts, ensuring your strategies are based on solid evidence rather than speculation.
  • Benefit from expert analysis and practical recommendations: Mintel’s reports are written by experienced analysts who interpret complex data and provide clear, actionable insights you can trust to guide your next moves.
  • Stay ahead with actionable intelligence on market trends and consumer behaviour: By combining fresh research with long-term market monitoring, our reports help businesses anticipate changes and adapt strategically. So you’re prepared to make informed decisions and drive growth.

What goes into a Mintel Market Intelligence Report?

Curious about how a Market Intelligence report comes together? We like to think of it as building a detailed puzzle. We start with individual pieces: data from consumers, market statistics, industry trends, and online conversations. Then our expert analysts add world-class human insight and industry knowledge. The pieces are assembled to reveal a clear, comprehensive picture of a market.

The Four Pillars of Our Research

We use a combination of four main research methods when creating our reports, each adding a valuable perspective:

  • Consumer Research: Direct surveys with real people, giving us clear, current insights into what people think and do.
  • Desk Research: In-depth review of trusted data sources. We use this rich database, plus powerful internal tools that track new products and market sizes, to detect trends and guide forecasts.
  • Trade Research: Insights from conversations with industry experts. Their real-world experience helps us understand what’s happening behind the scenes.
  • Brand and Social Media Research: Analysis of online opinions and trends. This lets us spot trends, measure brand sentiment, and capture feedback in real time, adding further depth to our research.

Bringing It All Together

Each of these four pillars provides a different piece of the puzzle. Consumer research tells us what customers think, desk research provides the factual framework, trade research offers an insider’s view, and social media analysis reveals public sentiment.

Our expert analysts are skilled in weaving these diverse data streams together. They apply a range of quantitative and qualitative analysis techniques to uncover the deeper story, connecting the dots to deliver clear, actionable insights. This comprehensive, multi-layered process is how we transform raw data into a market intelligence report you can trust to inform your most important business decisions.

£ 2,195 (Excl.Tax)
  • Download today with instant access
  • Multiple formats provided
  • Interactive databook included
  • Save up to 20% when you purchase multiple reports

Next Starts Here

Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.

Learn more

Trusted by global industry leaders

Deutsch logo

One of the biggest challenges we face is the need to get smart on a business or category real quick.

We are talking to clients who live and breathe their category every day and the expectation is that we will be able to get caught up very quickly, and bring the thinking that can help them.

We need to do that often in a matter of days, so it’s not a small ask. Mintel gives us a very articulate view of category conditions and does so at the speed we need it.

Jeff White, Business Development Director, Deutsch
VocaLink logo

We use Mintel Reports, mostly for financial services and ecommerce markets, plus a few retail and technology ones.

As a leading payments provider, we value additional insights into consumer behaviour, opinions and trends that are shaping the many different markets we operate in. Mintel is a very good and very quick way for us to obtain those insights.

We use Mintel to get a view on where a particular market is going, which can support us in product development and help us identify opportunities or indeed risks, it is a very useful barometer of a market’s potential.

 

Andrew Neeson, Market Intelligence Manager, VocaLink
Amazon logo

Working in a customer-obsessed organization means that data and insights have to be at our fingertips. Mintel’s reports help us support anecdotes with real quantifiable insights. The summary sections (which I really like) helps save time by giving a birds eye view of the content before spending time combing through the pages.

Our business review discussions are strengthened by the relevancy of the reports to help us better understand our customers. In addition, the customer service received from the team (especially in crunch periods) makes the process of understanding customer behavior even better.

Ngozi Ngonadi-Nkwoji, Senior Marketing Manager, Amazon
Abacus logo

There is no question that Mintel is the go-to resource for the best quality market research, but I did not think it was an affordable option for Abacus Marketing to consider. As a small marketing agency, we only work with a few new clients each year.

However, we have a very high-end consultative approach to our work, so we really do need a partner like Mintel to provide the big agency experience we are always aiming to deliver. Our clients come from an incredibly diverse range of industry sectors, so we obviously need access to market research reports from a very wide spectrum of marketplaces – and that is precisely what we got.

Stephen Taylor-Brown, Managing Director, Abacus
VML logo

We use Mintel to inform our thinking and reinforce strategy. If you’re presenting new ideas, it’s essential they are underpinned by robust data and evidence, and clearly rooted in fact.

Mintel gives us all that. It’s a great brand and one that is trusted by clients.

Marie Stafford, European Director, The Innovation Group, VML

Next Starts Here

Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.

Learn more