UK new car demand stays strong in March as ZEV mandate eases
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Discounting across the new car market softened in April, following high levels of promotional activity in March tied to the launch of the new ’25 registration plate. According to Auto Trader, the average discount across all fuel types declined from 9.3% off RRP in March to 8.6% so far in April.
The drop in discounting was more pronounced in the electric vehicle (EV) segment, where average reductions slipped from 11.7% to 10.3%. This shift may reflect recent adjustments to the UK government’s Zero Emission Vehicle (ZEV) mandate, which offer manufacturers greater flexibility to defer a portion of their EV sales targets to later years, when demand is expected to strengthen.
Retailers have responded to continued consumer interest by increasing the volume of new car listings on Auto Trader’s platform. The number of new cars advertised rose by 10% compared with the same period in 2023.
Chinese brands enter the top ten
Among individual models, the Volkswagen Golf led overall new car enquiries with a 4.1% share in April. MG’s ZS retained the top spot for EVs and was the second most enquired-about model across all fuel types, accounting for 2.6% of leads. The Range Rover ranked third with 2.5%.
While the top five positions were held by established manufacturers, Chinese brands Jaecoo and BYD both broke into the top ten. Jaecoo’s 7 SUV generated a 1.8% share of enquiries, ranking seventh, while BYD’s Seal U family SUV received 1.6% of leads, placing it joint ninth alongside Cupra’s new Terramar model.
BMW overtook Land Rover to become the most enquired-about brand across all fuel types, with a 14.6% share in April. Volkswagen rose to second with a 10.2% share, while Land Rover slipped to third at 9.2%.
Skoda and BMW see momentum
MG’s ZS remained the most popular new EV for the third consecutive month, attracting 8% of EV leads. However, the Skoda Elroq rose to second place with a 6.4% share, followed closely by the BMW i4 at 6.2%. The Elroq and i4 also recorded the fastest growth in lead share among EVs, rising 2.1 and 3 percentage points month-on-month respectively.
MG continued to lead the electric brand ranking with a 15.5% share of enquiries. BMW held second place with 11.7%, and Skoda took third with 7.1%.
Bex Kennett. Picture Credit: Auto Trader
Auto Trader’s New Car Performance Director, Bex Kennett, said: “Although softening slightly on March’s strong plate change period, consumer interest for new cars remains robust. Along with the relaxation in ZEV targets, this should come as welcome news for manufacturers facing uncertainty around the introduction of new tariffs.”
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