New car optimism ramps up ahead of plate change

With September’s key plate change looming, fresh data from Auto Trader suggests a surge in new car demand, boosting optimism across the automotive sector. Visits to Auto Trader’s new car platform have spiked by nearly 7% so far in August, compared to July, signalling a shift in consumer interest despite the distraction of Olympic fever earlier in the month. This jump marks a significant increase from the 2.7% rise recorded during the same period last year, and an even more notable rebound from July’s 0.2% dip.

Auto Trader’s data, which is based on approximately 2 million monthly visits and over 6.5 million daily new car searches, shows that efforts to improve affordability and increase the variety of new car stock are helping drive demand. New car listings on Auto Trader have increased by 23% since January, giving buyers more options as brands work to tackle the challenges in the market.

One tactic driving this resurgence is an increase in discounts. The average discount applied to new cars has edged up from 8.7% in July to 8.9% in August. This is a significant leap from the 6.7% discounts offered over the past year. Electric vehicles (EVs) have seen even steeper discounts, with incentives jumping from 6.6% to 10.9%. This move is driving more inquiries for EVs, which now account for 16.6% of all new car leads on Auto Trader, up from 13.6% in February.

The all-electric MG ZS has emerged as the fastest-growing new EV model in August, spurred by a mix of discounts, deposit contributions, and finance deals. The ZS now accounts for 6.8% of all new EV inquiries, a rise of 5.1 percentage points in just four weeks. Its sibling, the MG4, has also seen an increase, climbing to a 6.5% share. Both models helped MG climb to the top spot in the EV brand rankings, capturing 16% of all new electric car inquiries—twice that of second-placed Hyundai.

BMW also garnered significant attention in August, generating the largest share of new car advert views overall (19.5%). It led the new car charts, accounting for more than 1 in 10 (13.6%) of all inquiries sent to retailers, surpassing rivals Land Rover (12.9%) and Volkswagen (7.9%). At the model level, the Land Rover Defender 110 reclaimed its title as the UK’s most in-demand new car, dethroning the Volkswagen Golf.

“September remains a vital selling month for the new car market, so despite the broader challenges, the robust performance we’re seeing on our platform should be a cause for optimism. To help retailers capitalise on this momentum, we’ve just launched our largest-ever consumer marketing campaign aimed at driving more engaged buyers to the 20,000 new cars on our platform. Retailers should act quickly to ensure their stock is visible to potential buyers in the coming weeks.”

As the September plate change approaches, these figures offer hope that the new car market may see a strong recovery, aided by targeted discounts, increased stock, and growing consumer interest in both traditional and electric vehicles.