BYD drives demand in new cars
Auto Trader has reported strong consumer demand for new cars, with a 28.5% year-on-year increase in visits so far in June.
This continues a recent trend in robust buyer activity, with visits up 22% and 21% in May and April respectively.
Demand is being driven by wider choice and lower prices as a result of higher production, more competition and brands striving to meet tougher regulatory targets around EV sales. In fact, 53% of all new cars advertised have seen prices fall in the last year, with discounts rising from 6.4% to 8.8% and 70% offering finance packages.
Retail sales
Chinese all-electric brand BYD has risen from the fifth to second most popular new electric brand, behind BMW and ahead of Tesla.
Auto Trader’s new car performance director Bex Kennett, said: “The new car market continues to see flat-lining retail sales, but contrary to what the headline figures may suggest, consumer interest in new cars remains robust. What we’re seeing on our platform, is more retailers and brands looking to convert that interest into leads, by presenting them with more choice, better deals, and investing more in their digital showrooms.
“Looking ahead, we can expect the market to respond positively to recent economic green shoots, with consumer confidence rising in the wake of falling inflation and anticipation of further tax cuts. There may be some disruption over the coming weeks with the General Election and the Euros, albeit clearly not for BYD, but any impact on car behaviour will be short-lived.”
