The company said incentives are the second largest cost for manufacturers, ranking just behind raw materials and costing an average £2,000 per unit.

Financial incentives are said capable of generating an average £40m of revenue available over a vehicle’s life cycle. yet communication across the industry is usually paper-based, which makes it prone to errors, hard to analyse and slow to respond.

CAP’s New Vehicle Incentives (NVI) service will collect this data in a single place, allowing cars to be priced correctly at all times, to go to market quicker and for the industry to monitor the impact of financial incentives, and to avoid spending on models which don’t need them.

Product manager, Nigel Pates, said: ‘Deployment of new vehicle incentives is one of the most intractable problems faced daily in our industry. The problem is partly due to the innovation and success of manufacturers in providing a greater variety of models and the sheer plethora of features, within every range, which all goes toward providing fantastic choice for motorists but also makes the market more complex than ever before.

‘With the market moving ever faster, this problem will only grow and the existing processes we discovered in our research across the industry were already fraught with problems and frustrations for manufacturers and resellers. It was clear that a single solution was needed and CAP is the only information provider with the all-round capabilities and longstanding relationships in place already to provide it.’

‘CAP NVI will unlock millions of pounds of additional profit opportunity for manufacturers, drive out costs and eliminate the errors that are inevitable with the existing often paper-based methods of communicating incentive support.’