A study conducted in early 2024 into the complexities of the UK car market uncovered a dynamic industry resilient in the face of economic pressures and the current cost of living crisis. The analysis revealed recent robust performance from the used car sector as opposed to the new car market where demand was skewed towards fleet buyers.

A significant trend noted was shifting consumer preference away from medium-sized vehicles towards two polar categories: compact cars and larger SUVs. This movement underscored a broader diversification in buyer tastes, influencing market offerings and future industry focus areas.

Amidst these market shifts, Battery Electric Vehicles (B-EVs) were noted as are emerging as a disruptive feature within the market. However, there was evidence of a deceleration in recent growth, signalling a potential hurdle in transitioning B-EVs from a niche product for early adopters to a mainstream choice. Price was identified as a critical barrier, underscoring a pressing need for more affordable, mainstream electric vehicle options to reignite growth in this sector.

The study highlighted the importance of aligning car technology with consumer expectations, particularly within original equipment (OE) and tier suppliers. It noted varying degrees of enthusiasm for new technologies among different demographics, with older adults showing more reluctance towards adopting modern car innovations. This insight pointed to the necessity for manufacturers to tailor their technological offerings to meet the diverse preferences and comfort levels of car owners.