UK automotive market warned of falling supply
A new report by Cox Automotive has warned that the variety of new models being launched into the UK automotive market is likely to fall substantially in the next year.
Its Insight Quarterly (IQ) report says this is the result of vehicle manufacturers realigning their strategies to meet ever-stricter electric vehicle sales targets.
The report predicts that nearly two million new cars will be sold in the UK next year. But while this is a 3.6% rise on 2024, it remains 11.6% down on the pre-pandemic average of 2001-2019.
Of these, about 90% are imported, underlining the market’s dependence on global manufacturing. However, the UK’s ZEV Mandate strategy could put it out of step with EV demand in other international markets.
UK automotive market
Philip Nothard, Cox Automotive’s insight director, said: “Although global vehicle production remains high, a growing misalignment between production rates and the UK’s ambitious ZEV targets raises questions about OEMs’ commitment to meeting UK mandates, especially with rising pressure to increase EV sales.”
He said that ‘consumers may experience reduced vehicle availability, reflecting OEMs’ focus on aligning supply with actual demand.’
Nothard concluded: “By 2027, we expect to see a pivotal shift in the UK automotive landscape as the industry moves decisively away from internal combustion engines.
“With diesel and petrol vehicle shares set to decline sharply, and battery electric vehicles projected to make up over a third of new registrations, the market is clearly accelerating toward an electrified future. These changes underscore the need for adaptable strategies as both manufacturers and consumers embrace a new era in mobility.”
