Retail demand improving as OEMs ramp up offers and discounts

Retail demand for new cars is improving and car manufacturers are increasing the level of discounting to support dealers, according to new data from Auto Trader.

Auto Trader is reporting an 11% increase in visits to the new car section of its website year-on-year in March.

Average new car discounting has also increased to 9.3% off the recommended retail price (RRP), while discounts on EVs have moved up from 10.9% to 11.5% in March.

Enquiries for new cars have grown since the start of the year with leads (enquiries sent to retailers) up 20% on Auto Trader’s platform.

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

 In March so far, average new car stock advertised on Auto Trader rose 3% MoM and 19% YoY.

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 inquiries.

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.

Most in demand new car models on Auto Trader in March 2025 ranked by enquiries/leads – all fuel types

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 inquiries.

While 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%).

Bex Kennett, new car performance director at Auto Trader (pictured), said: “Despite the challenges in the new car market, there have been some encouraging signs through increased leads which have been driven by manufacturers and retailers offering better value for consumers.”

Most in demand new car electric brands on Auto Trader in March 2025 ranked by enquiries/leads