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 Cox Automotive's, in-full on video to watch back at your leisure.
Replay tickets are available from 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.'
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.
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New car brands now capture 10% of UK registrations, up from 2.65% in 2025, challenging traditional manufacturers.
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Younger buyers aged 25-34 are driving this shift, prioritizing technology and affordability over brand loyalty.
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Over 75 car brands now compete in the UK market, with German brands losing ground to new entrants.