Bumper year expected for car sales

Auto Trader is predicting that the new car market will grow four per cent next year from an estimated 1.89 million in 2023, to circa 1.97 million.

It expects the sale of EVs to also rise substantially, with the strict ZEV Mandate requiring 22% of all brand sales to be zero emission or face a fine of £15,000 for every non-compliant vehicle sold.

However, the current average share of EV sales across brands is just circa 16%, and for some, it’s as low as three per cent.

It also expects robust used car demand will continue in 2024 and result in a small market uplift, with transactions increasing to an estimated 7.24 million sales from the 7.17 forecast for this year.

Auto Trader’s commercial director Ian Plummer, said: “We’ve seen record breaking levels of engagement on our marketplace in 2023, both new and used sales have increased, and with car buyer sentiment remaining positive, we’re hopeful for another robust year for demand and overall transactions. Whilst there’s no doubt that 2024 will have its challenges, the used car market will be starting the New Year with some momentum behind it.

“Although new car retail faces uncertainty, manufacturers have been active in stimulating consumer demand, which we’re already seeing play through on our marketplace, with 16% more new car enquiries being sent to retailers. Coupled with increased competition from new entrants vying for UK market share, next year’s looking very attractive for car buyers wanting to make the electric switch.”