Prices for the cheapest cars from five major European manufacturers have increased “an average of 41% since 2019”, or “almost double the cumulative inflation rate”, Transport & Environment (T&E) said in a press release. According to this NGO, the increase goes far beyond inflation.
According to the European association that analyzed data from 2019 to 2023, the prices of small vehicles – such as the Peugeot 208 (Stellantis), the Ibiza series of the Spanish brand Seat (Volkswagen) or even the Twingo from Renault – have increased by “ Almost 6,000 euros” in four years, an increase from “37 to 56%.”
Inflationary context
During the same period, prices for Mercedes A and B classes, more expensive models, saw price increases “of 38% and 37% respectively”, T&E noted. The increase in the prices of small cars is well above inflation, but so is the increase “in the cost of raw materials and other components,” he added.
Car manufacturers “took advantage” of the inflationary context to “increase prices beyond inflation to significantly increase their own profits”, accused Anna Krajinska of Transport and Environment. T&E recalls that European manufacturers have achieved “record profits” of 64 billion euros in 2022.
Furthermore, the association highlights that the cheapest models have seen their prices increase by several thousand euros, while manufacturers estimate the increase in prices of small cars linked to the introduction of the Euro 7 anti-pollution standard, which will cost 200 euros more per car. “too expensive for them and for customers.”
Source: BFM TV
