Mintel last published a Market Intelligence report on the UK car market in September 2002, at a time when the sector had been emerging from a period of uncertainty in the wake of the Competition Commission’s Report on the Supply of New Cars in the UK in 1999. A key conclusion of this report was that cars in the UK were around 10% more expensive than in other EU markets, price differentials in part being a function of the strength of Sterling and differences in tax rates on the purchase of new vehicles.

Since Mintel’s last report into the UK car market in 2002, it has gone from strength to strength, buoyed by upbeat consumer confidence, strong rises in PDI and consumer expenditure, ultra-low interest rates, low inflation and high employment. According to the SMMT, since 2000, the average price of new cars in Britain has fallen by 10% as price competition between suppliers has increased, benefiting the consumer. Indeed, new registrations of cars in the UK reached an all-time high in June 2003, reflecting the booming economy and a more price-competitive trading climate which has encouraged consumer demand for new cars at the expense of the used sector. Indeed, the UK car market continues to be sustained by buoyant consumer confidence, which has unleashed a credit-led spending boom on major durables in a highly favourable economic climate.

Using the latest market analysis, sales data and attitudinal consumer research, this report explores key marketing issues, including the possible effects of successive interest rate rises since autumn 2004 and the influence of product innovation on the development of the market. Mintel’s findings offer you a unique means of tailoring your marketing to real demand, both tactically and strategically, helping you avoid market pitfalls, discover sector opportunities and achieve the best possible results.