The new car market has entered 2025 on a high note, according to new data from Auto Trader.
Following the usual seasonal slowdown, demand on its platform has rebounded strongly, with visits to its new car section rising 19% month-on-month (MoM) and 8% higher than the same period last year.
With consumer demand rising, EV adoption accelerating, and premium SUVs dominating the rankings, Auto Trader said key trends to watch include further price cuts on EVs as manufacturers push to meet ZEV targets, the growing popularity of electric SUVs led by Kia’s EV3 and Land Rover’s continued dominance in luxury SUVs.
Volkswagen’s Golf, which dominated 2024 as the UK’s most in-demand new car, slipped to second place in January, overtaken by the Land Rover Range Rover, which now leads the rankings with a 4.8% share of all new car enquiries sent to retailers on Auto Trader, compared to the Golf’s 3.4% share.
Land Rover has also claimed third place with the Defender, securing 3.1% of total enquiries. This double success highlights Land Rover’s ongoing appeal, especially in the premium SUV market, a segment that has remained resilient despite wider market challenges.
When it comes to overall brand popularity, there has been no shift at the top. BMW retains its crown as the UK’s most sought-after car brand, securing 14.6% of total enquiries on Auto Trader.
Land Rover follows closely behind, accounting for 13.6%, reflecting the strong performance of the Range Rover and Defender. Volkswagen remains in third place with 7%, though it was nearly overtaken by its German rival, Audi, which recorded 6.8% of total enquiries.
One of the most notable trends in early 2025 is the continued rise in consumer interest for brand new electric vehicles (EVs). Auto Trader data shows that EV enquiries increased from 14.1% in January 2024 to 17.9% in January, marking a 3.8 percentage point rise year-on-year.
This sustained growth aligns with increased manufacturer incentives designed to encourage EV adoption and meet the UK’s Zero Emission Vehicle (ZEV) mandate targets, which require an increasing percentage of new car sales to be electric.
Despite overall discounts on new electric cars softening slightly from 12% in December 2024 to 11.5% in January, Auto Trader said attractive deals remain a key factor driving demand.
The most popular EV brands in January were MG – 17.1% of all brand-new EV enquiries; BMW – 10.9% and Mini at 8.2% which has climbed the rankings dramatically over the past 12 months from 1.4% last year.
Fastest-growing EV brands between December 2024 to January were Skoda whose EV market share grew by 2.7 percentage points (from 2.4%) and Kia whose market share grew by 2.7 percentage points from 5.3%.
Among fully electric models, the MG4 remains the UK’s best-selling EV, generating 9.5% of all new EV enquiries in January. However, it faces increasing competition from Kia’s latest electric SUV, the EV3, which has doubled its market share in just a month.
The EV3 now holds a 4.4% share, marking a 2.2 percentage point increase year-on-year, making it the fastest-growing EV model in early 2025, suggesting affordable electric SUVs are gaining traction.
Auto Trader’s New Car Performance Director, Bex Kennett, commenting on the market’s positive start to 2025, said: “It’s been an encouraging start for the new car market in 2025. The solid levels of demand we saw in the closing months of last year have accelerated into January as many buyers begin researching their new car in earnest ahead of the calendar’s busiest car-buying period.”
She added that with the ZEV mandate pushing manufacturers to meet stricter electric vehicle targets, car buyers may soon see even more competitive offers.
