“The marketplace is changing dramatically,” said Tony Whitehorn, an industry consultant and former boss of Hyundai UK. “In 2020 there were 46 brands and today there are 72. By the end of 2026, there are likely to be around 80. Competition between them is intense but that’s good for the consumer because it gives them more choice.”
Competition should also drive down prices but Whitehorn warns that dealers and car makers will be wary of discounts getting out of control.
He said: “Even the Chinese brands know they can’t just cut their prices because that fuels depreciation, which in turn undermines the future guaranteed values calculated on finance agreements.
“Instead, I believe that [in 2026] they and other brands will become more innovative, adding more features to their cars [to increase value], rather than simply slashing prices.”
Another consequence of the increasing competition between brands has been the closure of car dealerships. With sales and profit margins depressed, only the leanest, most efficient dealers can survive.
For example, in 2025 Ford continued its programme of reducing its dealer network by almost 50% to around 200 dealers. Some – such as Platts of Marlow, a Ford dealer for more than 40 years – have since taken on the Suzuki franchise, a brand that itself has recently terminated 30 dealers in order to, among other reasons, improve the profitability of those which remain.
Meanwhile, other dealerships have been lost through consolidation or – following in the footsteps of Renault and Dacia – by opening dual franchises. For example, Sytner-owned Agnew, a business in Northern Ireland, has become the first Volkswagen dealership to also represent Skoda, with each brand occupying opposite ends of the same showroom.
“Pre-pandemic, dealerships were closing at the rate of around 2% a year but this has since accelerated due to the likes of Vertu and other big groups buying up dealers and closing some,” said Nothard.
“I predict that [this] year, there will be fewer dealers but those that remain will be larger.
“Economy of scale works for dealers and manufacturers but it also works for consumers, who should benefit from the increased buying power of larger groups in the form of better new car deals and lower prices.”