New car demand surges as September plate change approaches, Auto Trader reports

Demand for new cars is on the rise, with Auto Trader reporting a nearly 7% month-on-month (MoM) increase in platform visits for August ahead of the critical September plate change approaches.  

This marks a significant jump compared to the 2.7% MoM increase seen in August last year and a major rebound from July’s 0.2% decline.

Commenting on the data, Auto Trader’s new car performance director Bex Kennett, said, “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.”

Auto Trader’s data, drawn from approximately 2 million monthly visits and over 6.5 million daily searches, suggests that strategies to boost demand by improving affordability and increasing the visibility of new car inventory are proving effective.

The volume of new cars advertised on Auto Trader has increased significantly, with August levels up 23% since January.

Average discounts on new cars have also risen slightly, from 8.7% in July to 8.9% in August, with a notable increase from 6.7% over the past year.

With pressure mounting from the Zero Emission Vehicle (ZEV) mandate, the average discount on electric vehicles (EVs) has jumped from 6.6% to 10.9%, a move that Auto Trader’s data suggests is helping to drive demand. EV enquiries have increased from 13.6% in February to 16.6% in August.

The all-electric MG ZS has become the fastest-growing new EV model this month thanks to an mix of discounts, deposit contributions, and finance offers. Its share of new EV enquiries has surged to 6.8%, a 5.1 percentage point rise in just four weeks.

 “MG’s strong push with the ZS has clearly resonated with consumers, and the brand’s efforts haven’t stopped there,” said Kennett, noting that the MG4 is the second-fastest climber, now accounting for a 6.5% share of enquiries.

Despite MG’s surge, Honda’s e:Ny1 retained its position as the most in-demand EV model, holding a 7.4% share.

However, MG’s overall performance propelled it to the top of the electric brand rankings, capturing 16% of all new electric enquiries.

Kennett remarked: “MG’s dominance in the EV market this month is striking, with the brand generating twice as many leads as Hyundai and Honda.”

BMW also performed strongly, leading in both overall new car and EV advert views. In August, BMW accounted for 13.6% of all new car enquiries and 19.5% of advert views. Kennett praised BMW’s performance, saying: “BMW’s ability to capture consumer attention across both electric and traditional fuel types speaks to the strength of their brand and product lineup.”

Land Rover and Volkswagen followed BMW in overall demand, with the Land Rover Defender 110 overtaking the Volkswagen Golf as the UK's most in-demand new car model.