The study analyzed the prices of small vehicles, such as the Peugeot 208 (Stellantis), the Ibiza series from the Spanish brand Seat (Volkswagen) or even the Twingo from Renault. Verditc: European car manufacturers have increased the prices of their cheapest models well beyond inflation, the NGO said this Monday Transport & Environment (T&E). Prices for the cheapest cars from five major European manufacturers have increased “on average by 41% per year since 2019”, or “nearly double the cumulative rate of inflation”, T&E said in a statement.
According to the European association which analyzed data from 2019 to 2023, the prices of small vehicles have increased by “nearly 6,000 euros” in four years, an increase of “37 to 56%”. During the same period, prices for Mercedes A and B classes (more expensive models) saw a price increase “of 38% and 37% respectively”, T&E noted.
The manufacturers “took advantage” of it
The increase in prices for small cars is well above inflation but also the rise “in the cost of raw materials and other components,” she added. Car manufacturers “took advantage” of the inflationary context to “raise prices beyond inflation in order to significantly increase their own profits”, accused Anna Krajinska of Transport & Environment. The association recalls that European manufacturers achieved “record profits” of 64 billion euros in 2022.
In addition, T&E points out 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, causing 200 euros more per car, “too expensive for them and for the customers”.