1:54 pm, March 24, 2026
An influx of new car brands is reshaping the UK car market, with younger buyers leading a shift away from traditional manufacturers, according to new research from Cox Automotive.
The new white-paper, called ‘The Challenger Effect’, was written for Car Dealer Live 2026, held at the British Motor Museum on March 19.
The research highlights how the market now has more than 75 car brands all fighting with each other for market share, and how this has intensified competition. Moreover, how new entrants now account for almost 10% of registrations since the start of 2026 — up sharply from just 2.65% a year earlier.
Presenting the findings during Cox Automotive’s panel session at Car Dealer Live was the firm’s insight director Philip Nothard. He was joined by Waylands CEO John O’Hanlon, and Craig Ford, head of sales, marketing and digital solutions at Motability Operations.
The full white-paper can be downloaded here, and the session can be watched by visiting the Car Dealer Live website where you can purchase a replay ticket. This will allow you to watch back each session, including Autotrader’s, in-full on video to watch back at your leisure.
Replay tickets are available for the CarDealerLive.co.uk website.
Nothard explained the research was carried out to help dealers understand how both consumer attitudes and market dynamics are changing.
‘The key is to understand what’s happening in the consumer market and customers’ perceptions towards some of the new entrant brands,’ he said.
He added: ‘We are seeing quite a big shift, particularly from the German brands.’
While only a small proportion of drivers currently own vehicles from new entrants, attitudes are changing, with more than a third of consumers shifting brand preferences in recent months.
Nothard encouraged dealers to look at how they present themselves to younger buyers, who are far more open to switching brands as they are attracted by technology, connectivity and lower cost of entry.
‘If you’re really reliant on that 25-to-34-year-old age bracket, those are the ones shifting to one of the new entrants. You need to start thinking about whether you need to change what you’re currently doing.’
From left to right: Cox’s Philip Nothard, Waylands CEO John O’Hanlon, and Craig Ford from Motability
Waylands CEO John O’Hanlon said the shift is already visible in dealerships.
‘We are looking [at the shift towards entrant brands] and it’s [from] BMW, Mercedes, and the Volkswagen Group. It’s these cars that are turning up as part-exchanges,’ he said.
He added: ‘I do recognise a lot of what’s in the study.’
Affordability and product appeal are key drivers behind the growth of challenger brands, particularly in schemes such as Motability.
The firm’s Craig Ford said: ‘Affordability is clearly a major factor when customers are choosing cars.’
Despite this growing interest, the research highlights that barriers remain, with concerns around quality, reliability and aftersales support still holding many buyers back.
Ford stressed the importance of dealer readiness, particularly around servicing.
The panel also pointed to the need for dealers to adapt their sales approach, particularly for younger, digitally-led buyers.
‘I think for that, the younger generation, it’s got to be a great omni-channel experience,’ Ford said. ‘What they’ve seen online connects to that physical experience.’
Looking ahead, Nothard warned that the pace of change could accelerate further as new brands, electrification and technology reshape the market.
‘We’re at the biggest point of change that we’ve been ever seen in decades.’
The full white-paper can be downloaded here, and the session can be watched by visiting the Car Dealer Live website where you can purchase a replay ticket.
Watch (and listen on Spotify) James Baggott’s highlights of Car Dealer Live 2026 below.
