The UK automotive retail market maintained its strong footing throughout August, although the pace of growth softened as the month progressed.

With August 2026 and August 2025 both comprising 21 trading days, the results provide a genuine like-for-like comparison, offering a clear view of underlying market performance.

New Car Market Continues to Accelerate

New car sales delivered another impressive month, finishing August up 25.9% year-on-year.

The result reflects continued consumer demand and a market that remains notably stronger than the same period last year. While retailers are benefiting from increased registrations, the challenge remains converting this momentum into sustainable profitability through operational efficiency and retention-focused strategies.

Used Car Demand Levels Out

The used car market painted a more measured picture.

Sales finished the month 1% ahead of August 2025, a considerable slowdown compared with the +7% growth recorded at mid-month. While the market remains positive, the trend suggests demand softened as August progressed, highlighting the importance of close inventory management and pricing discipline as retailers enter the autumn period.

Aftersales Delivers Steady Growth

Aftersales continued to be a consistent source of strength across the sector, with both key performance indicators improving throughout the month.

• Hours Sold: +3.5% YoY
• Parts Sold: +4.2% YoY

Both measures strengthened from the softer readings seen earlier in August, demonstrating the resilience of workshop activity. Many high-performing retailers have maintained disciplined workshop loading and continued to maximise opportunities in tyres, servicing and wear-and-tear maintenance.

As the vehicle parc continues to evolve and the proportion of electric vehicles increases, forward-thinking businesses are adapting their aftersales strategies to protect profitability and identify new revenue opportunities. Those using timely, accurate performance data remain best placed to spot trends early, benchmark performance and take action before challenges impact results.

Looking Ahead

Overall, August reinforces a familiar theme seen throughout much of 2026: strong new vehicle performance, a more balanced used car market and a resilient aftersales sector.

While some areas of growth are moderating, the underlying market remains healthy, and dealers equipped with the right data and insights will be best positioned to maintain performance through the final quarter of the year.