UK new car demand holds firm as discounts remain above 10%

The UK new car market has entered the final quarter of 2026 with sustained consumer demand, as increased vehicle availability, competitive pricing and a growing choice of brands continue to support sales, according to the latest data from Autotrader.

Traffic to Autotrader’s new car platform remained level year-on-year in October, following a strong September plate change period that saw new car registrations increase by 12%.

The volume of new cars advertised on the platform was 13% higher than a year earlier, reflecting intensifying competition between established manufacturers and newer entrants.

Average advertised discounts remained above 10%, standing at 10.2% across all fuel types and 10.1% for electric vehicles, despite easing slightly from September.

The figures reinforce Autotrader’s recently upgraded full-year forecast of 2.21 million new car registrations in 2026, representing annual growth of 9.5%.

Consumer interest in electric vehicles continues to strengthen, with electric models accounting for a record 33.8% of all new car enquiries on Autotrader during October.

BMW remained the most popular electric vehicle brand on the platform, attracting 9.4% of electric enquiries, followed by BYD (6.2%), Hyundai (5.8%) and Kia (5.6%).

At model level, the BMW iX3 led electric enquiries with a 4.7% share, closely followed by the Renault 5 E-Tech (4.4%) and Cupra Raval (3.8%).

Across all fuel types, established manufacturers continued to dominate overall consumer interest, with BMW accounting for 9.8% of enquiries, followed by Land Rover (7.9%) and Volkswagen (6.7%).

However, newer Chinese brands are gaining ground, with Jaecoo capturing 5.2% of enquiries and Chery achieving 4%, highlighting the impact of increased competition on consumer choice.

Despite the positive market outlook, Autotrader has called for a more flexible approach to the UK’s Zero Emission Vehicle (ZEV) Mandate as the Government’s consultation closes on 23 October.

The company reiterated its support for maintaining the 2030 and 2035 phase-out dates, arguing that long-term regulatory certainty remains essential for manufacturer investment and the transition to electric vehicles.

However, it warned that the steep increases required under the Mandate’s annual targets could become increasingly difficult to achieve, particularly given geopolitical uncertainty, fluctuating fuel prices and the planned introduction of electric Vehicle Excise Duty (eVED) in 2028.

Autotrader believes greater flexibility in the near-term targets would help manufacturers manage commercial pressures while maintaining progress towards longer-term decarbonisation objectives.

Bex Kennett, Head of New Car at Autotrader, said:

“The fact that consumer engagement has held firm immediately after such a strong September plate change is an encouraging sign of genuine momentum heading into the closing months of the year. Intense competition is giving buyers greater choice and attractive offers across widening range of brands and models, reinforcing our upgraded full-year forecast.

“However, maintaining this trajectory requires a balanced regulatory approach. Long-term clarity through the 2030 and 2035 phase-out dates remain vital for industry investment, but the significant increases required in the intervening years will become increasingly challenging against the current economic and geopolitical backdrop.

“Pragmatic flexibility in the near-term ZEV Mandate trajectory would help manufacturers remain on course, while continuing to deliver meaningful reductions in carbon emissions from road transport.”