Today’s
automotive
market
Staying ahead in a competitive market
requires constant evolution, agility and
relentless tech-led innovation.
The ecosystem
we operate in
The automotive market is complex and often
inefficient. There are multiple participants and
unsurprisingly, consumers can find the process
of buying or selling a car overwhelming.
Through Autotrader products, services and
partnerships, we aim to significantly improve
the car buying experience, as well as leverage
our existing relationships to improve more of
the value chain.
size of UK car parc
at the end of 2026
Driving change in tomorrow’s car market
We are continually adapting our onsite experience to meet
the needs of both our customers and consumers.
This is core to remaining the UK’s largest automotive
marketplace for new and used cars.
81.7 m
Cross platform visits
Monthly average visits spent across all platforms in 2026
13,942
Average retailer forecourts
Advertising with Autotrader in 2026
451 k
Live car stock
Average number per month in 2026
New and used car
market dynamics
New car registrations
New car registrations grew 5% over the past 12 months to 2.1 million (2025: 2.0 million), with growth coming through the retail channel for the first time in four years. We have seen a notable increase in volumes from newer Chinese manufacturers, providing franchise retailers with opportunities to broaden their portfolios at a time when profitability in some established brands has come under pressure, partly due to the costs of meeting the Zero Emission Vehicle (‘ZEV’) mandate.
The electric transition remains integral to the health of the new car market, with EVs achieving a record 23.4% share (nearly half a million registrations), while the Government’s new Electric Car Grant, launched in 2025 successfully stimulated private demand. With increasing numbers of models becoming eligible for the grant, it opened up EVs to a wider pool of buyers.
However, mixed messaging from the Government is risking interest in EVs, as a newly proposed pay per mile EV tax (Electric Vehicle Excise Duty) threatens to erode the cost savings of running an EV. Despite regulatory complexities, the market benefits from stiff competition, with 72 brands now operating in the UK. This has created an influx of affordable electric models, expanding consumer choice and affordability.
2.1m
new car registrations in the 12 months to March 2026,
+5% year-on-year growth
Used car transactions
The used car market demonstrated exceptional resilience throughout the financial year, concluding 2026 with 7.7 million transactions, representing steady 1% year-on-year growth. This sustained recovery provides a very robust foundation for the next financial year. With new registrations also increasing, the combined UK car market is moving closer to 10 million total transactions, effectively returning the industry to its pre-pandemic scale for the first time since 2019.
This growth is driven by continued consumer appetite for vehicle ownership. Last year we recorded nearly one billion platform visits to Autotrader, helping our partners’ stock to continue turning over at a highly profitable pace. While demand is secure, the market faces structural supply headwinds as the estimated 2.5 million “lost” pandemic registrations age through the vehicle parc. This shortfall is now maturing into a “cliff edge” for middle-aged stock, resulting in a forecasted 17% drop in the availability of 5-7-year-old vehicles over the next two years. However, by leveraging our unparalleled data and AI-powered tools, retailers are well equipped to navigate these supply gaps, adapt their forecourts, and fully capitalise on the very strong levels of buyer engagement.
Retail Price Index
Providing an overview of the latest pricing data from
our marketplace and across the retail market.
c.6,700
Deal Builder customers live in March 2026
23.4%
of new car registrations were electric sales during 2026
The key drivers shaping the future of our industry
The automotive industry as a whole is facing an
unprecedented wave of change, most notably in the way
people buy cars and the acceleration in the adoption of
electric vehicles. Over the next 5 to 10 years, the cars
consumers drive and the ways in which they buy, own
and use them will be dramatically reshaped.
As car buying choices have become more complex, the demand for an omnichannel journey - blending digital convenience with the vital in-person only a retailer can offer - continues to accelerate. Recognising that a ‘digital first’ mindset actively drives physical footfall, we remain comitted to bringing more of the car-buying journey online.
To lead this evolution, we took the strategic decision this year to place our Deal Builder product at the very centre of the Autotrader buying journey for all our retail partners. By standardising this seamless digital experience across the platform, we have empowered retailers with high-intent online leads as well as actionable consumer intelligence with the launch of our AI-powered tool, Buying Signals. This step has proven effective: top retailers are now converting over 80% of reserved vehicles, benefiting from significant reductions in administrative time and capturing vital out-of-hours demand.
Crucially, this rollout has been defined by a deep commitment to partnership. We recognise that while digital reservations deliver the strongest buyer intent, flexible solutions are essential to suit diverse showroom operations. In direct response to partner feedback, we’re introducing/introduced a new 'Reservation Request' alternative, providing businesses with greater control over their sales processes and stock status. What’s more, the recent launch of our in-person Customer Advisory Groups ensures an ongoing, collaborative dialogue. By continually listening and adapting, we’re ensuring our digital retailing solutions drive industry-leading performance while building a stronger, more collaborative retail ecosystem.
2025 was another record year for electric vehicles (EVs) with just under half a million electric car registrations – about one in four of new cars sold. Competition is becoming an even stronger force in the sector, with over 72 brands now in the UK, up from 45 in 2019. Existing and new brands are working hard to reduce the upfront affordability barrier thanks to technological advancements and finance offers.
However, mixed messages from the Government throughout the year has created uncertainty. On the one hand manufacturers benefited from the extra flexibilities introduced to the ZEV Mandate in April 2025, as well as the launch of the Electric Car Grant. The Grant of up to £3,750 per car, is available on eligible electric cars with an RRP of less than £37,000. Whilst on the other hand, the Government then announced its intention to introduce a new electric Vehicle Excise Duty in 2028, which will eat into the running cost savings EVs currently enjoy. Given the fragile nature of consumer interest in EVs at the moment, we need to see supportive policies that will give consumers confidence and affordability benefits so believe this is the wrong tax, at the wrong time.
In the used market, greater choice and improved affordability are attracting more buyers, who are in turn served by a greater proportion of retailers now stocking EVs. In 2025, used EVs were the fastest selling fuel type on our platform at 31 days, compared to petrol’s 35 days and consumer enquiries were up by more than a quarter (27%). Leveraging unique market insights, we ensure retailers have all the data and support to succeed in the electric transition. We also invest in driving consumer awareness and confidence in EVs through our marketing initiatives including a regular ‘EV Giveaway’, and our myth busting Facts campaign, which is endorsed by the Department for Transport.
We continue to work with the Government advising on future policy and consumer awareness campaigns, including a new advertising campaign that went live in January 2026.
View the latest market data
To discover more about today’s automotive market, check out the latest market reports in our news & views section.
Generating value
Maintaining a robust value creation model for driving growth and succeeding in the strategic delivery of our purpose.
Read MoreOur strategy in action
Bringing together our three strategic priorities to deliver the best, data-driven digital retailing experience for our consumers and retailers.
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