Over the first 9 months of 2024, the European market (28 countries) recorded 9.74 million new vehicle registrations, or 2.4 million fewer than over the same period of 2019. “One of the main reasons for this decline is, unsurprisingly, the significant rise in prices.” From 2021 to 2022, in the 5 major European markets, they increased from 6.3% to 12.5%, then from 2022 and 2023, they increased again from 6.7% to 16.8%.
Today, the average price of a new car in Germany is 56,735 euros (excluding discounts), which is more than the average gross annual salary (51,900 euros). And it’s the same story in France (49,000 euros average price)in Spain (54,000 euros) in Italy (56,000 euros) and in the United Kingdom (59,360 euros).
As we see in the table above, France is very far from being the most impacted country. So indeed, the price of new thermal cars has increased by 10% in France while the increase has been significantly greater in neighboring countries. It is in England and Germany that prices have exploded the most with respective increases of 26 and 29%. As for electric models, France is the only country in Europe where prices have fallen by 6%, while they have reached + 32% in Italy. Concretely, the average price of an electric car in France drops to 55,430 euros, while thermal models reach 42,207 euros. Tesla’s pricing policy and the social leasing effect which boosted sales of small electric vehicles can explain this drop in prices.
Unsurprisingly, it is Chinese manufacturers who dominate the production of electric vehicles. They represent 51% of the market ahead of the Americans at 22% and the Europeans at 18%.
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