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 choices have become more complex, the demand for an omnichannel journey, that blends digital convenience and transparency with the in-person experience that only a retailer can offer, is accelerating. A ‘digital first’ mindset and the right online presence is also influencing footfall – although some consumers contact a retailer before visiting, the majority still just walk in, looking to speak to someone before finalising their purchase. Our research shows that two thirds of walk-ins don’t feel the need to make contact first, having already researched the car and retailer online.
We’re committed to bringing more of the car buying journey online through our digital retailing solutions. Our main focus has been in developing our Deal Builder product for used cars, which enables our partners to offer a seamless online buying journey from their Autotrader adverts. By the end of this financial year, there were c.2,000 retailers and c.84,000 vehicles live with the product available.
Over the past year, retailers have consistently seen more than double the sales conversion rate of deals versus traditional enquiries, as well as a significant reduction in haggling and time spent on admin, which freed-up front-line colleagues to focus on driving even more sales. It enables consumers to engage with retailers when and how it best suits them, with almost half of deals being submitted out of hours, meaning retailers would arrive at work with enquiries in their inbox. Although the initial point of contact can now happen at any time, most drivers still want to test drive before completing the deal, signalling that a mix of both digital and physical is still essential.
2024 was the year of ‘peak petrol’, which means from now on the volume of petrol cars on the UK’s roads will fall. It was also a record year for electric sales as the share of new car registrations hit 21% with volume exceeding 400,000. However, progress came at a cost in the shape of heavy discounting whilst the fleet sector accounted for three out of four EVs registered. The shift to electric is fuelling increased competition in the market, with over 62 brands expected to be in the UK market by the end of calendar year 2025, up from 45 in 2019. At a time when the industry is working hard to encourage more people to make the switch, this year will see the introduction of the Electric Car Supplement, potentially pushing brand-new EVs even further out of reach for many car buyers. Private buyers wanting to transition to electric are increasingly relying on the used market, drawn by lower resale values, competitive pricing relative to the ICE market and growing consumer choice. Since mid-2023, the used EV market has continued to grow, with consumer demand outpacing supply on retailer forecourts.
Through our unique market data and insights, and our range of products and tools, we continue to support the transition to electric among consumers, as well as all our customer and industry stakeholders, helping them to make more informed buying and selling decisions. Over the last financial year, we have invested significantly in driving consumer awareness, through both our monthly ‘EV Giveaway’ competition, and our multi-million-pound new car marketing campaign. We’re also working closely with Government, ensuring key departments have the most accurate and informed view of the progress being made on the road to electrification.
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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