Automotive Business Magazine – Q2 2026 – Digital edition - Magazine - Page 70
Interview
Cazana
Milly Standing speaks with Derren Martin, automotive
expert consulting for Cazana, about key trends to keep in
mind as 2026 revs up
2
026 holds a lot of potential
for the UK automotive
market, from legacy brands
and upstart OEMs battling
for consumers' attention,
to Government mandates
and charging infrastructure
propelling electrification.
Derren Martin, automotive
expert consulting for Cazana, speaks
with Automotive Business Magazine
about where the market is heading now.
Under pressure
New entrant OEMs are bringing
affordable, high-tech ICE, BEV and fully
electric vehicles to the UK market. This
has started to create pressure for legacy
manufacturers.
“The consumer is considering these
new brands, which are very strong on
their pricing,” Martin says.
“If you look at a used Qashqai or
Mokka, there is now a big price gap
between these new Chinese cars that
are coming in. If a consumer walks into
a dealership looking to spend a certain
amount on a used car, they may end up
walking out with a new Chinese car.”
Some legacy brands are still popular
because they have held onto their
reputation with customers. However, this
loyalty may only go so far, particularly as
retail prices have started ticking up for
some brands.
The new vehicles and brands coming
into the market have only been in the UK
a short time. At the moment, this means
they have not yet entered the used
market in force. Manufacturers must
think about remarketing for used EVs,
especially for people who will be making
monthly payments on their vehicles.
The forecast for residual values at
the end of a three-year lease are an
important aspect affecting monthly
payments, and something new entrant
OEMs need to sharply focus on. These
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forecast residual values live and die by
prices in the used car market.
Making EVs work for everyone
The UK’s transition to electrification
is the culmination of many factors,
including individual brand marketing and
a push from the Government. This will
only have the desired effect if they are
accompanied by interest among buyers.
Martin says: “It is about the marketing
of EVs and selling them on the total cost
of ownership (TCO). You can only sell EVs
to people who think it will work for them
and their lifestyle.
“Currently, having an EV is more
complicated than having an ICE car. It is
also about explaining the range, making
sure that everyone knows that the EV will
do the majority of journeys for you. It
also still remains expensive to charge on
a public network because of VAT.”
Many are unwilling to give up the
convenience of ICE vehicles.
Martin says: “The charging
infrastructure still is not up to scratch,
and there will always be people who
want to buy ICE cars.
“Some people are calling for a
Government grant on used EVs, but I
don’t think that will particularly work.
“The consumers will buy the car if
the cars are priced correctly. The focus
should be on the [TCO] and charging
infrastructure; it is about making more
consumers aware that they could live
with an EV.”
Some political parties have hinted
they would oppose the ZEV Mandate.
This might be music to some ears, but
no matter where you land, the truth is
it would cause disruption for those that
have invested in electric vehicles.
Martin says: “I think this may deter
some people because they think that if
a particular political party gets in, then
they won’t need to convert to driving
electric vehicles.”
