Fleet News

Boom in budget marques

THE traditional dominance of the used market by volume carmakers is being threatened by budget manufacturers.

Budget marques are increasingly retaining better residual values over three years than the establish volume badges.

The likes of Skoda, Hyundai and Kia are seeing their expanding product ranges and improved quality lead to increased demand on the used market. However, they are still some way behind the volume players in terms of market share, experts believe.

The continuous expansion of different market sectors means both prestige and budget manufacturers have developed niche products, which have stolen market share from the traditional mass-market sectors catered for by the volume players.

Because of this, prestige brands top the RV charts in all sectors where they compete, but it is the upward march of the budget brands that really attracts attention, according to EurotaxGlass’s.

Diesel cars from volume manufacturers are faring less well than budget brands because of their high retail prices. In all sectors but lower-medium, budget diesels have better RVs than volume marques. In the upper-medium market, the difference is as much as 10%.

Volume manufacturers fare better in the petrol market, although budget models in the upper-medium, executive and SUV sectors all retain a higher percentage of their original values than the volume brands.

Alan Cole, editor of EurotaxGlass’s Market Intelligence Service, said: ‘The volume players are not having it all their own way.

‘Whilst neither volume nor budget brands look likely to threaten the premium models, the budget brands are looking increasingly strong when compared to the volume manufacturers. This is a trend we expect to continue.’

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