Record number of new cars to be launched in 2006

More than 120 all-new car ranges will be launched in the UK in 2006, according to EurotaxGlass’s – almost double the previous record tally of 66 during 2005. The area that will see the biggest growth in choice will be SUVs, with 25 new ranges. A further 32 will join the sportscar, coupe and convertible segments. While the launch frenzy will improve choice for buyers, it could ultimately spell bad news for the residual values of some models.

“With total new car registrations down by 5.6 per cent during the first ten months of this year, dealers will welcome anything that might stimulate demand,” explains Alan Cole, Editor for Glass’s Market Intelligence Service. “There is, however, the danger that manufacturers may be jumping on the bandwagon of certain fashion-led niche market segments just as demand is becoming satisfied, with unavoidable implications for used prices.”

He continues, “In the case of SUVs, the increasingly vocal anti-SUV lobby may have an additional negative affect. If more owners feel stigmatised for their supposed impact on levels of congestion or pollution, the popularity of these cars may diminish at a time when new model growth is at its highest, increasing pressure on dealers to sell new and used examples at lower prices.”

Despite the significant increase in new car choice, EurotaxGlass’s does not foresee any imminent increase in registrations. “Most of the sales of these new niche ranges will be at the expense of existing models, so new car market expansion is, in our view, unlikely in 2006,” concludes Cole.

Of the 122 new ranges already confirmed, 14 are from the budget brands, 55 from the volume manufacturers and 53 from the premium marques.

Key launches in 2006/early 2007

City cars and superminis – Hyundai Getz, Volkswagen Fox, Peugeot 207, Toyota Yaris, Fiat Grande Punto, Nissan Note, new Mini
Upper-medium sector – Ford Mondeo, Mercedes-Benz C-Class, Volkswagen Jetta, Alfa Romeo 159 and Kia Magentis
Executive and luxury sectors – Lexus LS, Citroen C6, Saab 9-5 and Volvo S80
SUVs – Toyota RAV-4, Land Rover Freelander, Suzuki Grand Vitara, Jeep Commander, Jeep Patriot, Jeep Compass, Dodge Caliber, Audi Q7, BMW X5, Mercedes-Benz GL-Class, Honda CR-V, Nissan X-Trail, Hyundai Terracan, Fiat Sedici, Suzuki SX4, Volkswagen Golf-based SUV (name TBC), Vauxhall Antara
Sports, coupe and convertibles – Vauxhall Astra Twin Top, Peugeot 407 Coupe, Renault Laguna Coupe, Volkswagen Eos, Audi TT coupe and roadster, Volvo C70, Honda S200, Jaguar XK Coupe and Convertible, Porsche Cayman
MPV – Volkswagen Sharan, Ford Galaxy, Mercedes-Benz R-Class