The last few years have proved a very difficult time for British car manufacturers.

Covid, then and the part supply issues, a lack of semi-conductors, cost of living crisis and ongoing issues around Brexit have all taken their toll.

However, the latest sales figures show that model availability and sales have returned to levels not seen since before the lockdowns.

Sell sell sell

Manufacturers still face a challenging combination of slow retail sales, especially to the private buyers,, new regulatory targets, and increased competition from new entrants.

All this has led AutoTrader to predict significant discounting in 2024.

The new car market is set to return to a ‘push’ model in 2024, it says,. This will include with financing offers alongside discounting being used to stimulate consumer demand. It is being seen as particularly important when it comes to electric models (EVs).

With EVs commanding higher prices than conventional engined vehicles, along with the cost of living issues and a putting back of the banning of petrol and diesel vehicles from 2030 to 2035, sales of EVs have been slowing.

Next year is also going to see a flood of new Chinese models which are being exected to undercut general market prices.

As a result, AutoTrader expects a 4% growth in new car sales, from an estimated 1.89 million in 2023, to circa 1.97 million in 2024.

Used car market stays strong

Auto Trader is also predicting robust used car demand will continue in 2024.

It forecasts transactions will increase to an estimated 7.24 million sales, up from the 7.17 forecast for this year.

Potential market growth will continue to be hampered by the 3 million ‘lost’ cars. These weren’t  sold between 2020 and 2022 due to Covid.

Although it began to slowly return this year, current stock levels on Auto Trader are up just 2% on December 2022, and with significant variations across different market segments.

Competition counts

Auto Trader’s commercial director, Ian Plummer, said: “We’ve seen record breaking levels of engagement on our marketplace in 2023, both new and used sales have increased, and with car buyer sentiment remaining positive, we’re hopeful for another robust year for demand and overall transactions.

“Whilst there’s no doubt that 2024 will have its challenges, the used car market will be starting the New Year with some momentum behind it.”

He added: “Coupled with increased competition from new entrants vying for UK market share, next year’s looking very attractive for car buyers wanting to make the electric switch.”