New car interest remains buoyant as manufacturers increase discounts

According to the latest data from Auto Trader, demand for new cars continues to be strong amongst consumers with the automotive platform reporting that visits to its new car platform increased 11% year-on-year (YoY) in March.

With the new ‘25 number plates now in circulation across the UK, the data suggests that many buyers are now in-market and are planning to make new car purchases over the next few months. Enquiries for new cars have grown since the start of the year with leads (enquiries sent to retailers) up 20% on the platform.

Car brands ramp up discounts across all fuel types
Manufacturers are well-versed in the opportunity March presents, and are again responding by increasing the level of discounts on their brand new vehicles in order to tempt consumers. The average new car discount from manufacturers has inched higher to 9.3% off RRP, whilst discounts offered on new electric vehicles have increased from an average of 10.9% to 11.5% this month.  

With a challenging 28% ZEV Mandate target for this year, financial incentives may well continue over the coming months to encourage more consumers to make the switch to electric.

In addition to offers, retailers are taking advantage of the buying sales period by advertising even more new car stock in front of the UK’s biggest audience of engaged car buyers. In March so far, average new car stock advertised on Auto Trader rose 3% MoM and 19% YoY.

MG leads the way on electric
The MG ZS remains the most in-demand new electric model for the second successive month with a leads share of almost 11%. The ZS is joined by another MG favourite, the MG4. The popular hatchback, which was the UK’s hottest new electric car on Auto Trader last year, drove just over 10% of EV enquiries sent to retailers so far this month. The top three was rounded off by the newly launched Skoda Elroq which has risen from sixth place last month and generated a 4.2% share of enquiries.

There’s been no change at the top of the leaderboard for the most popular new car electric brand as MG also took first place with a 21.5% share of enquiries. Whilst second place also remained unchanged with BMW receiving close to a 14% share, there was a new entry in third with Kia reaching a 6.3% share, closely followed behind by Renault (5.6%) and Porsche (5.3%).

Volkswagen Golf reclaims first position of ‘hottest’ new car
Looking across all fuel types, the Volkswagen Golf regained top spot as the most in-demand new car in March with a 5.9% share of enquiries. Land Rover’s Range Rover Sport model followed closely behind with a 5.2% share whilst last month’s leader the Land Rover Range Rover dropped down to third with a 3.4% share.

Despite losing the top spot for most in-demand model, Land Rover once again topped the leaderboard of the hottest brand across all fuel types. The British-badged manufacturer drove around 15% share of enquiries so far this month, with German marque BMW in second place at 13.7%. The top three was rounded off by another iconic German brand with Volkswagen reaching a 9.8% share of leads.

Bex Kennett, New Car Performance Director at Auto Trader commented, “Manufacturers have been working really hard to stimulate demand in March and Auto Trader has been providing retailers a great platform to connect with prospective buyers. Despite the challenges, there have been some encouraging signs through increased leads which have been driven by manufacturer and retailers offering better value for consumers. The brands winning in the electric space are different to the overall list and are those maximising the opportunity by putting their stock in front of the largest automotive audience in the UK.”