A needle in a haystack: Finding opportunities among an industry in flux

Welcome to Issue 5 of Insight Quarterly (IQ), Cox Automotive’s comprehensive analysis of the trends shaping the future of the UK automotive sector.

In this issue, we delve into the dynamic shifts shaping both the new and used car markets. The new car industry continues to adapt to geopolitical, economic, and supply chain fluctuations, revealing cautious optimism for electric vehicle adoption and highlighting a range of growth opportunities. Our detailed examination of global production trends underscores China's significant rise in passenger car production, in stark contrast with the declining output in the EU and UK.

The UK market has shown resilience with a strong start in 2025, marked by a better-than-expected Q1. This growth, driven by a mix of fleet and private retail buyers, signals renewed momentum. However, the journey towards electrification remains complex, with the UK falling short of its ZEV mandate targets despite record EV sales.

In the used car market, stability prevails amidst volatility. Trade values are stabilising, offering retailers a chance to set robust prices and maximise margins. The commercial vehicle sector also shows resilience, with increasing volumes and strong market health.

Our forecasts for the new and used markets provide structured scenarios to help you navigate the year ahead. We explore the potential impacts of macroeconomic conditions, policy changes, and market performance.

We hope you find this edition of IQ both insightful and actionable. Your feedback is invaluable to us, and we would love to hear your thoughts on what to include in future issues. Stay tuned for more in-depth analysis in the next IQ report in Q3 2025.