Shares in Auto Trader Group have dropped by over 10%, despite the automotive platform recording a 5% increase in group revenue to £601.1m in the year to 31 March.

In this period, the Auto Trader brand saw its revenue jump by 7% to £564m, although Autorama recorded a revenue decline of 12% to £36.3m.

Despite this drop, the group’s operating profit increased by 8% to £376.8m, with Auto Trader recording a 4% jump to £394m.

Furthermore, Autorama saw a 51% recovery in its operating loss, standing at £4.3m.

Auto Trader Group said its position in the market "remains strong" with record numbers of both buyers and sellers using Auto Trader.

It added that while it had seen demand for used cars, with record numbers of cross-platform visits to Auto Trader’s websites, it had noted constrained value for vehicles aged three to five years.

Thiscomes as the firm launched its suite of AI-enabled features, Co-Driver, which aims to support retailers to create "high quality adverts more efficiently". Since its launch, it has seen high levels of engagement from customers using this product.

Chief executive officer at Auto Trader, Nathan Coe, said: "Despite broader macroeconomic uncertainties, the UK car market is in good health and we continue to deliver against our strategy to improve car buying and retailing. A key highlight of the year was the launch of our suite of AI-powered products called Co-Driver, which is delivering one of the most significant improvements to our search experience and our retailer tools in years."

In its outlook for the 2026 financial year, Auto Trader expects retail revenue growth of between 5% and 7%. This comes after revenue in the second half of 2025 was constrained by the acceleration in speed of sale.

However, for 2026, the firm said it had responded to market dynamics with offers to stimulate stock and continue to support retailer margins with its prominence products.

Investment director at AJ Bell, Russ Mould, concluded: "Thanks to limited supply and exceptionally strong demand, car tyres are barely touching the forecourt before they are snapped up and this means there is less need for retailers to buy advertising slots from Auto Trader.

"These market dynamics have also made it harder to upsell clients to more expensive packages. This has caused growth to stall and seen the shares go firmly into reverse on the publication of full-year results.

"After all, Auto Trader’s website is the one most visited by prospective car buyers because it has the most listings. Car retailers are therefore compelled to use its products, reinforcing its leading position. This will support the business in the long term but hasn’t protected it from some short-term disappointment today."

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