UK Car Industry Review 2025
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UK car market analysis indicates an industry undergoing significant shifts, shaped by evolving consumer preferences and broader economic challenges. Inflation/supply chain disruptions have influenced buying behaviour, driving increased demand for small and medium-sized cars due to their affordability/lower maintenance costs. In 2024, these cars captured 53% of total sales.
Mintel’s car market review shows that used cars accounted for nearly 80% of all sales, as cost-conscious buyers prioritised savings and took advantage of greater availability. For today’s car buyers, price and quality remain the top priorities, with 50% and 47% respectively identifying these factors as most important.
Interest in electric and hybrid vehicles continues to grow, though widespread adoption faces obstacles, i.e. affordability and infrastructure limitations. Fuel efficiency and eco-friendly features resonate with 39%, highlighting a rising desire for sustainable and efficient transportation options.
When it comes to ownership preferences, nearly 60% of buyers favour outright ownership, opting for cash payments or loans. Alternative models like short-term rentals, car sharing, or car club memberships remain niche, appealing to only 10% of adults.
Digital platforms have become the leading source of information for buyers, with 46% relying on online resources – outpacing traditional mediums like television and print.
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.
This report was written by Utku Tansel. Utku is a member of the European Retail Team and responsible for research and writing reports/content. He has almost two decades of success in driving global thought leadership, project/content management experience delivering strategic business intelligence and actionable insight to major multinational companies.
The UK car market is shifting, with growing demand for small/medium cars, and interest in electric/hybrids. Price and quality remain key priorities for buyers.
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