2022
9
UK Car Review Market Report 2022
2022-02-16T03:07:57+00:00
OX1100315
2195
147982
[{"name":"Automotive","url":"https:\/\/store.mintel.com\/industries\/transport\/automotive"}]
Report
en_GB
“The UK car market is beginning to re-emerge from the disruption caused by the COVID-19 pandemic. Current interest is focused on used vehicles with demand for new cars expected to…

UK Car Review Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Car Review report identifies consumer attitudes towards new and used car sales, hybrid car market, and car industry sales in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Car Review market in the UK.

Current Market Landscape

In what is a market where consumer confidence has been badly affected by the COVID-19 pandemic it is welcome to see current strong support for acquiring hybrid and electric cars. Car manufacturers are largely behind these increased volumes, with new models and a push towards the promotion of hybrid and electric cars both assisting demand.

  • Electric and hybrid cars make up for 27.5% of market sales.
  • Sales in used car market increased from 74.7% in 2016, to 80.7% in 2021. However, their overall volumes fell back by 13% since 2016.
  • Television advertising took 60.7% of ad spend in 2021, with digital adverts taking only 21.7%.

COVID-19 has wreaked havoc across the car market. Although for sellers it has been factors such as a lack of consumer confidence that has been most evident, for manufacturers the impact has come from disruption to global supply chains which in turn have been affected by increasing inflationary pressures. As of early 2022 such pressures continue with prices charged for used cars continuing to be overinflated by shortages for some manufacturers. Taken with wider inflationary problems affecting a growing number of consumers, the affordability of owning a car is also being impacted.

Future Market Trends in Car Review 

The increased reliability of modern cars remains a major threat for manufacturers looking to sell new vehicles. Current higher than average prices for hybrid and electric cars and the legacy of the pandemic on personal confidence and expenditure are both likely to further push interest towards owning older vehicles.

With the impending ban on the sale of new petrol and diesel cars approaching in 2030 the main opportunities in this market can be found in the electic sector. Affordability is likely to remain a major issue for many and a key area that needs to be addressed as manufacturers make these vehicles a mass market choice for buyers. Use of leasing and other deferred payment methods are likely to help, as will be a growing used market for hybrid and battery cars.

Read on to discover more details or take a look at all of our UK Automotive market research.

Quickly understand

  • The impact of COVID-19 on the UK car market.
  • How COVID-19 and factors such as the Brexit agreement might affect the direction of travel for the car market.
  • Recent developments in new/used sales, vehicle category and fuel preferences.
  • Key drivers impacting on the market and main channels used for purchasing.
  • Company and brand shares within the new car sector.
  • Consumer preferences towards types of car, factors affecting car ownership, use of cars since the pandemic and channels used for information on cars.

Covered in this report

Car Brands: Volkswagen, Audi, BMW, Ford, Toyota, Mercedes-Benz, Vauxhall, Kia, Hyundai, Nissan, Tesla, Jaguar, Land Rover, MINI, Peugeot, Škoda, Porsche, Nissan, SEAT, MG, Citroën, Renault, Honda, Mazda, Suzuki, Fiat, Dacia, Chrysler.

Other Brands: Auto Trader, Cinch, Cazoo, eBay.

Expert analysis from a specialist in the field

This report, written by Neil Mason, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The UK car market is beginning to re-emerge from the disruption caused by the COVID-19 pandemic. Current interest is focused on used vehicles with demand for new cars expected to accelerate in 2022. While price and value are key demands interest in innovations and environmental benefits are notable for wealthier buyers.

Neil Mason
Retail Category Director

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on the car market
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on the car market, 2022
    • The market
    • Market size and forecast
      • Figure 2: UK new and used car sales, by volume, 2016-26
    • Used car sector benefits from difficulties faced by new car market
      • Figure 3: New and used car sales, by volume, 2016 and 2021
    • Interest in SUVs helps boost dual purpose category
      • Figure 4: New car registrations, by category, percentage point change, 2016 and 2021
    • Those buying most recent car online has doubled in 12 months
      • Figure 5: Where last car was purchased, November 2020 and November 2021
    • Restrictions on car use in urban areas expected to widen
    • Companies and brands
    • Pandemic hits some manufacturers more than others
      • Figure 6: Percentage-point change in share of new car registrations, top 10 manufacturers in 2021, 2019 and 2021
    • Pandemic and launch of new AFV models helps boost use of television
      • Figure 7: Percentage media type split of recorded above-the-line, online display and direct mail total advertising expenditure by car manufacturers, 2021
    • Tesla leads on differentiation and Ford on trust
      • Figure 8: Attitudes towards and usage of selected brands, 2021
    • The consumer
    • Income is a major factor in car ownership
      • Figure 9: Car ownership, 2021
    • Falling new car sales boosts profile of used sector
      • Figure 10: Age of car owned, 2017-21
    • Opportunities for car ownership exist amongst older men and more affluent adults
      • Figure 11: Other access to cars, 2021
    • Young adults are interested in specialist categories of car
      • Figure 12: Type of car owned, 2021
    • Older adults are some of the most demanding car owners
      • Figure 13: Importance of factors when owning a car, 2021
    • Young men are using their car more as the impact of the pandemic recedes
      • Figure 14: Use of a car since the pandemic, 2021
    • Young adults can be better targeted using niche media
      • Figure 15: Sources of information, 2018 and 2021
  3. Issues and Insights

    • Manufacturers will need to offer something different to tempt new buyers
    • Stagnation in car parc necessitates new strategies
    • Rise in digital media shouldn’t obscure traditional promotional channels
  4. Market Size and Performance

    • Car sector suffers disruption from pandemic
      • Figure 16: Short-, medium- and long-term impact of COVID-19 on the car market, 2022
    • Sales drop 20.9% in 2020 as pandemic further depresses volumes
      • Figure 17: New and used car registrations (United Kingdom), by volume, 2016-21
    • Used car sales strengthen their profile
      • Figure 18: New and used car sales, by volume, 2016 and 2021
    • AFVs capture over a quarter of sales as diesel sales slump
      • Figure 19: New car sales, by type, 2016 and 2021
  5. Market Forecast

    • Strong short-term recovery expected to be tempered by stagnation
      • Figure 20: UK new and used car sales, by volume, 2016-26
    • New cars will grow to account for around a quarter of sales in 2026
      • Figure 21: New car sales, by new and used, 2021 and 2026
    • Over half of new cars sold are forecast to be AFVs by 2026
      • Figure 22: New car sales, by type (million units), 2022-26
    • Market drivers and assumptions
      • Figure 23: Key drivers affecting Mintel’s market forecast, 2016-26
    • Forecast methodology
  6. Market Segmentation

    • Used car sector performing the stronger as country rides the pandemic
      • Figure 24: New and used car market volumes (United Kingdom), million units, 2016-21
    • UK car parc is showing signs of stagnation
      • Figure 25: Number of licensed cars (Great Britain), million units, 2000-20
    • … with a fall in its size likely over the coming decade
      • Figure 26: Number of forecast licensed cars in the UK, million units, central scenario, 2020-35
    • Demand for SUVs boosts dual-purpose and MPV sector
      • Figure 27: New car registrations, by category, percentage-point change, 2016 and 2021
    • Hybrid and electric car sales record strong growth
      • Figure 28: Hybrid and electric new car registrations (United Kingdom), by volume, 2016-21
    • … as electric and hybrid sector establishes itself
      • Figure 29: New car registrations (United Kingdom), units, 2016 and 2020
    • Success of hybrid and electric sales dents profile of petrol and diesel
      • Figure 30: Number of licensed cars (Great Britain), million units, 2016-21
    • Older cars steadily expand profile within the market
      • Figure 31: Age structure of the UK car parc in years, 2016-20
    • Over a third of households own two or more vehicles
      • Figure 32: Percentage of households with car availability, England, 2009-19
    • Car ownership is highest in the south
      • Figure 33: Car ownership per household, by region (England), 2002/03 v 2020
  7. Channels to Market

    • Franchised sector bounces back after pandemic
    • Online is placing increased pressure on independent dealers
      • Figure 34: Sales of cars, by channel, 2017-21
    • Online sales boosted by investment
      • Figure 35: Where last car was purchased, 2020 and 2021
  8. Market Drivers

    • GDP should reach pre-pandemic levels by the end of Q1 2022 …
    • … but the post-COVID bounce-back will be short-term
    • Inflationary pressures are mounting
    • Consumers’ financial wellbeing has slipped from its recent high point …
      • Figure 36: Household financial wellbeing index, 2016-21
    • Older men are more likely to be drivers
      • Figure 37: Full car driving licence holders, by age and gender, England, 2020
    • Cars preferred mode for journeys more than a mile
      • Figure 38: Mode share of trips, by main mode (different trip lengths), England, 2020
    • Pandemic reduces regular car use
      • Figure 39: Frequency of using a private car, England, 2019 and 2020
    • Distance travelled by car for leisure is boosted during the pandemic
      • Figure 40: Miles travelled per person per year, private car/van *, England, 2019 and 2020
    • Fuel prices increase as global economies re-open
      • Figure 41: Unleaded and diesel pump prices, January 2020 – December 2021
    • Over half of households expect to purchase a car in the next three years
      • Figure 42: Intention of purchasing a car/s in the next three years, 2021
    • Over half of buyers expect to purchase a new car
      • Figure 43: Likelihood or new or used car purchase in the next three years, 2021
    • Restrictions on car use in urban areas are expanding
  9. Market Share

    • Pandemic results in sales dropping back for some manufacturers
      • Figure 44: Change in manufacturer share of sales (top 10 manufacturers as of 2021), 2019-2021
    • Manufacturers with a strong hybrid and electric line-up perform well
      • Figure 45: Manufacturer shares of new car registrations, 2015-21
    • Superminis maintain lead as Tesla’s Model 3 challenges market leaders
      • Figure 46: Top 10 new car models, 2018-21
    • Ford and Vauxhall models continue to dominate the used market
      • Figure 47: Top 10 used car models, 2018-21
  10. Launch Activity and Innovation

    • Portable Head-Up Display
    • Air purification systems
    • Hyundai Blindspot View Monitor
      • Figure 48: Hyundai BVM 2021
    • Bosch unveils a digital sun visor
  11. Advertising and Marketing Activity

    • Advertising spend fails to recover in 2021
      • Figure 49: Recorded above-the-line, online display and direct mail total advertising expenditure by car manufacturers, 2017-21
    • Investment is increasingly being directed to hybrid and electric vehicles
      • Figure 50: Recorded above-the-line, online display and direct mail total advertising expenditure, by type of car, 2017-21
    • Decline in automotive sales has seen many manufacturers rein in expenditure
      • Figure 51: Recorded above-the-line, online display and direct mail total advertising expenditure, by leading car manufacturers, 2017-21
    • TV increasingly benefits from media-rich demands
      • Figure 52: Percentage media type split of recorded above-the-line, online display and direct mail total advertising expenditure by car manufacturers, 2021
    • Nielsen Ad Intel coverage
  12. Brand Research

    • Innovative and premium brands stand out from others
      • Figure 53: Attitudes towards and usage of selected brands, 2021
    • Key brand metrics
      • Figure 54: Key metrics for selected brands, 2021
    • Brand attitudes: Tesla stands out as being an innovative brand
      • Figure 55: Attitudes, by brand, 2021
    • Brand personality: Audi and Mini flirt with being fun
      • Figure 56: Brand personality – macro image, 2021
    • Brand personality: Affordability is strongly associated with being basic
      • Figure 57: Brand personality – micro image, 2021
  13. Car Ownership

    • 72% of adults are car owners
      • Figure 58: Car ownership, 2021
    • Greatest disparities in car ownership are evident by income
    • Car ownership falls back during 2021
      • Figure 59: Car ownership, 2017-21
  14. Age of Car Owned

    • Pre-pandemic purchases dominate the market
      • Figure 60: Age of car owned, 2021
    • Older adults remain a challenge for sellers
    • Men favour owning a car purchased from new
    • London – a key market for recent purchases
    • Wealth is a key factor influencing purchasing
    • Slowdown in sales boosts profile of those owning older cars
      • Figure 61: Age of car owned, 2017-21
  15. Other Access to Cars

    • Most non-car owners don’t have a driving licence
      • Figure 62: Other access to cars, 2021
    • Adults aged 25-44 most likely to not hold a driving licence
    • Income is another factor impacting on holding a driving licence
    • Older men and wealthy adults offer opportunities
  16. Type of Vehicle Owned

    • Car owners prefer smaller vehicles
      • Figure 63: Type of car owned, 2021
    • Smaller vehicles are popular with older women
    • Young adults are important owners of niche categories
    • Wealthier adults want larger and more specialist cars
    • New car buyers are polarised towards compact and SUVs
    • Buyers are moving towards larger vehicles
      • Figure 64: Type of car owned, 2017- 21
  17. Importance of Factors in Owning a Car

    • Quality and value for money dominate for many car owners
      • Figure 65: Importance of factors when owning a car, 2021
    • Older adults want it all
    • Urban environment offers a platform for innovation
    • Young families want something better
    • Owners of older used cars are focused on price and value
    • Compact car owners are less bothered about quality and enjoyment
  18. Use of a Car since the Pandemic

    • Non-essential car use has been most affected by pandemic
      • Figure 66: Use of a car since the pandemic, 2021
    • Women are travelling less by car
    • Young men are driving the return to normality …
    • … as are young families
    • Rural car owners are still using their car less
    • Interest in driving from new car owners is boosting their use
  19. Sources of Information

    • Digital leads media-rich rivals television and printed publications
      • Figure 67: Sources of information, 2021
    • Under-35s rely on a variety of channels for information
    • Outdoor opportunities in urban areas
    • Digital advertising of interest to wealthy households
    • New car buyers are eager to access a wide range of channels
    • Multiple channels are also of interest to those seeking something different from a car
    • Older women remain a communication challenge
    • Television benefits from the pandemic
      • Figure 68: Sources of information, 2018 and 2021
  20. Appendix – Data Sources, Abbreviations and Supporting Information

    • Data sources
    • Exclusions
    • Abbreviations
    • Consumer research methodology
  21. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 69: Market forecast and prediction intervals for cars, (million units) 2021-26
    • Market drivers and assumptions
      • Figure 70: Key drivers affecting Mintel’s market forecast, 2021-26
    • Forecast methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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