Posted by: Jasleen Mann in Latest News Monday, 8 September 2025 0

A surge of short-cycle activity may have masked the underlying issues the new car market faces, says Cox Automotive.
The latest baseline forecast project that the new car market will reach 2,035,750 registrations in 2025, up by 3.2% YoY.
Philip Nothard, insight director at Cox Automotive, said: “The fragility of the new car market has come to light in the second quarter of the year.
“While we celebrated a positive start to the year, what is now apparent is that manufacturer-led incentives and a short-term pull-forward effect due to Vehicle Excise Duty (VED) charges temporarily masked the impact of ongoing challenges such as interest rates and waning consumer demand.
“Many manufacturers appeared overly confident after the performance seen between January and March. To the extent that they pulled back or withdrew incentives entirely. This confidence was quickly undermined as showroom activity saw a rapid downturn.”
New car registration data indicates that 30% of all new car registrations in June were processed on the final day of the month.
This suggests a significant uptick in end-of-the-quarter tactical and short-cycle activity, where sales teams push a high volume of last-minute sales to meet targets.
EV demand is forecast to increase marginally by the end of the year. The Electric Car Grant will only provide a limited boost with little change to the overall trajectory of the market.
By the end of 2025, forecasts predict that EV registrations will account for 25% of the market.
Nothard said: “Working to refine business models, enhance customer value propositions and supercharge operational efficiency will be crucial to overcome the waves of uncertainty across the new car industry.
Rather than sink into these challenging times, retailers must rise to the challenge and take hold of the opportunities an increasingly competitive market offers to them.”
 
Tagged with: cox automotive
Cox Automotive reports EV values falling nearly twice as fast as hybrids
Thursday, 21 August 2025
Used car supply constraints ‘expected to ease’ in second half
Wednesday, 25 June 2025
Manheim strengthens auction management team
Wednesday, 18 June 2025
Fleet sales to drive UK new car market to two million in 2025
Wednesday, 4 June 2025
ZEV Mandate changes will save 3.5% of revenue at risk due to tariffs
Friday, 11 April 2025
Latest Cox Automotive new car forecast sees EVs overtake petrol
Thursday, 13 February 2025
You must be logged in to post a comment.

See more top suppliers:
Blue Motor Finance Limited (Blue), a UK based car finance provider authorised and regulated by …
Wishing all our customers and connections a super successful handover day #NewRegDay
Use the affordable Keytracker intelligent locker system to securely automate the drop-off and collection lockers …
Diamondbrite, renowned for their top-quality paint and fabric protection systems, have expanded their range with …
We are pleased to share the launch of our new partnership with live-streaming service, Kwikcast, …
Blue Motor Finance Limited (Blue), a UK based car finance provider authorised and regulated by …
Wishing all our customers and connections a super successful handover day #NewRegDay
Diamondbrite, renowned for their top-quality paint and fabric protection systems, have expanded their range with …
We are pleased to share the launch of our new partnership with live-streaming service, Kwikcast, …