2026 car sales to return to pre-pandemic levels
New analysis by Auto Trader is predicting that 2026 car sales in the UK will return to pre-pandemic levels.
It expects sales of 9.8 million this year to increase to 10.2 million in 2026, matching the volumes last recorded in 2019.
Growth will be driven largely by the used car market, which is anticipated to increase by three per cent next year to reach around 8.2 million transactions.
In contrast, the new car market is predicted to remain fairly flat, rising by just one per cent to 2.035 million sales.
Themes
Meanwhile, Auto Trader has identified three key themes that will influence how the industry approaches 2026: used car stock, electric vehicles and new brand competition.
It expects the battle for used cars stock to intensify, particularly in the older segments, with analysis suggesting there will be 1.6 million fewer 3-5-year-old cars in the market next year compared to 2019, while the volume of 5–7-year-old models will see a 17% year-on-year drop.
In terms of electric vehicles, the Electric Car Grant will continue to support sales of new electric cars, and demand will continue to outstrip supply in the used electric vehicle market, meaning both the new and used EV markets offers a significant growth opportunity.
Auto Trader also expects the number brands on the market to rise from 72 to about 80, offering car buyers more choice than ever.
Opportunity
Ian Plummer, commercial director, said: “The fact that the UK’s combined new and used car market is on track to finally return to the same size as 2019 is a clear signal of the resilience and the fundamental necessity of car ownership for consumers.
“However, this is not easy growth. Success in 2026 will be defined by agility, the ability to adopt a conquest mindset, and leveraging data to accurately target and convert customers in both the increasingly fragmented new car market and an ever more competitive used EV market.”
