More than 120 all-new car ranges will be launched in the UK next year – almost double the previous record tally of 66 during 2005.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
According to Eurotaxglass’s, SUVs will see the biggest growth in choice with 25 new ranges. A further 32 vehicles will join the sportscar, coupe and convertible segments. While the launch frenzy will improve choice for buyers, it could ultimately spell bad news for the residual values of some models.
“With total new car registrations down by 5.6% cent during the first 10 months of this year, dealers will welcome anything that might stimulate demand,” said EurotaxGlass’s Alan Cole. “There is, however, the danger that manufacturers may be jumping on the bandwagon of certain fashion-led niche market segments just as demand is becoming satisfied, with unavoidable implications for used prices.
“In the case of SUVs, the increasingly vocal anti-SUV lobby may have an additional negative affect. If more owners feel stigmatised for their supposed impact on levels of congestion or pollution, the popularity of these cars may diminish at a time when new model growth is at its highest, increasing pressure on dealers to sell new and used examples at lower prices.”
Despite the significant increase in new car choice, EurotaxGlass’s did not foresee any imminent increase in registrations. “Most of the sales of these new niche ranges will be at the expense of existing models, so new car market expansion is, in our view, unlikely in 2006,” added Cole.
Of the 122 new ranges already confirmed, 14 are from the budget brands, 55 from the volume manufacturers and 53 from the premium marques.
