London, 29 May 2025 – The ongoing international trade war may yet play into the hands of Britain’s car buyers, according to Nathan Coe, chief executive of Auto Trader. Speaking to the Press Association, Mr Coe suggested that rising tariffs and export levies elsewhere could render the UK a comparatively more attractive destination for new vehicles, potentially bolstering the supply of cars arriving on these shores.
“Depending on where they all (tariffs) settle, you might find that new car prices are slightly higher on a like-for-like basis,” Mr Coe observed. “But the car market is very simple: it’s about supply and demand. If it’s more expensive to export those cars to other countries, it could well be that the UK is a place where we find a few more new cars coming this way.”
His comments come in the wake of Auto Trader’s latest market analysis, which revealed that while overall new-car registrations grew by 3 per cent in 2024, this was entirely driven by company and fleet purchases; private consumer sales actually fell by 4 per cent year-on-year. “Last year, the number of new cars sold to consumers in the UK was very low by historical standards,” Mr Coe noted. He argued, however, that a shift in global trading patterns might help redress that imbalance.
At the same time, British car manufacturers are feeling the strain. The Society of Motor Manufacturers & Traders (SMMT) reported that UK vehicle production dropped sharply in April to just 59,203 units—the lowest April output in over 70 years, excluding the Covid-affected period of 2020. The SMMT cited the twin blows of higher trade barriers and the early timing of Easter as contributory factors.
Despite these headwinds, Auto Trader’s own platform data suggests that consumer interest remains robust. The number of vehicles advertised on its site averaged 449,000 per month in the year to March—up 5 per cent on the previous period—even as motorists contend with elevated interest rates and sustained inflation. “Despite broader macroeconomic uncertainties, the UK car market is in good health,” Mr Coe asserted. “We continue to deliver against our strategy to improve car buying and retailing.”
Market analysts say that banks’ reluctance to refinance or lend at affordable rates has dampened demand among private buyers, who increasingly hold out for discounts or turn to nearly new models. Yet if more manufacturers opt to divert stock to the UK—attracted by its large, stable market and the absence of punitive export duties—the extra volume could help maintain competitive pricing for end consumers.
James Cartwright, an automotive economist at Sterling Insights, agreed that Britain stands to gain. “In a world where tariffs are rising on both sides of the Atlantic and between major Asian markets, manufacturers will look for alternative outlets to maintain volume,” he explained. “The UK’s longstanding appetite for new cars, coupled with a mature sales infrastructure, makes it a logical refuge.”
However, Cartwright cautioned that such a dynamic hinges on relative exchange-rate movements and the final structure of any new trade agreements. “If the pound weakens, import costs will rise regardless,” he warned. “Conversely, if the UK secures favourable terms with key partners, that could lock in an advantage for our market.”
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Auto Trader’s platform also reported that nearly 70 per cent of shoppers now begin their purchase journey online, reflecting a broader digital shift in consumer behaviour. The company has invested heavily in data analytics and virtual viewing tools, aiming to streamline the entire process from initial search to final delivery. Mr Coe believes this technological edge will further underpin the UK’s appeal to both buyers and sellers.
Looking ahead, the prospect of an influx of new-car stock arrives as the industry grapples with the imperative of electrification. Sales of battery-electric and plug-in hybrid vehicles rose by 28 per cent last year, yet their combined share remains under one-third of total registrations. “If manufacturers redirect more of their EV production to the UK, that could encourage faster uptake here,” suggested Cartwright.
For now, however, the prevailing narrative is one of cautious optimism. With global trade tensions showing little sign of abating, Britain may yet find itself on the receiving end of a welcome surplus of automotive offerings—just as long as tariff disputes continue to divert output away from other markets. As Mr Coe concluded: “The UK has got a good market and it does buy a lot of cars. In an era of trade friction, that could prove a genuine advantage.”
