Market Report March 2019

80% of consumers would be wary of using a car, taxi or bus without the safety net of a human driver

Today, there remains a lack of consumer demand for full autonomy. Our research showed that eight in ten people would be wary of using a car (84%), taxi (83%) or bus (82%) without a human driver, though this is less of a concern for trams and trains (72%). When asked whether they’d use a self-driving car that they couldn’t take control of, nearly half (48%) said they ‘absolutely wouldn’t use this vehicle’.

January 2019 marked the first time diesel searches had been lower on Auto Trader than petrol

In November 2016, the High Court’s ruling that the government wasn’t doing enough to tackle air pollution sparked tough words from Westminster, including the potential introduction of a nation-wide scrappage scheme. Since then, we’ve seen the percentage of fuel related searches attributed to diesel on Auto Trader fall from circa 71% in late 2017, to a record low of just 45% in January 2019, marking the first time ever it’s fallen below petrol, which now accounts for 48%; a jump from 26% in November 2016.

In July 2018 we saw the first fully electric vehicle, a Renault Zoe, top the list as the UK’s fastest selling used car

Every metric indicates a significant increase in consumer appetite for low emission vehicles. In the new car market AFVs recorded a 20.9%¹ spike in registrations, and a 26.9%² in used transactions. The trend has continued into the new year, with new AFV registrations recording an annual growth of 26.3%³ in January, albeit from a very low base of fewer than 9,000 during the same period last year. On Auto Trader, the percentage of fuel related searches for AFVs increased 40% on 2017, and 130% on 2016. And in terms of prices, the average cost of a used AFV grew 6% annually.

1. Society of Motor Manufacturers and Traders new car registrations: January 2019
2. Society of Motor Manufacturers and Traders used car transactions: February 2019
3. Society of Motor Manufacturers and Traders new car registrations: February 2019

Conclusion

The growing interest in AFVs reflects a wider trend of an increased consumer appetite for more advanced automotive technologies. Today, 31% of consumers say they have at least one semi-autonomous feature in their car, and 78% said they used it regularly.

It hints at an exciting opportunity for retailers and brands; of those with semi-autonomous features in their car, more than half 51% said they would make them more likely to buy from the same brand again and 80% would be willing to pay extra for them in their next car.

Despite this huge opportunity to upsell and build brand loyalty, complicated marketing jargon, unclear pricing and a lack of frontline education means the industry is missing out on the full potential. Rather than talking about features in technical terms, customers are twice as likely to pay for features that are explained in ways that will help them to understand its tangible personal benefit.

However, new opportunity is not without cost. New technologies need huge investment to support mass adoption from manufacturers, retailers and government. At a time of political and economic uncertainty, rapidly evolving automotive technology offers a genuine opportunity to drive car sales and build long-lasting relationships with car buyers.

30% of cars are hybrid

TEst role