
Recent news has spread alarming claims about car price increases in 2024. Many media outlets reported a 1,000-euro average price hike, causing confusion among consumers and industry professionals. The UNRAE, the National Union of Foreign Vehicle Representatives, steps in to clarify and debunk these misleading figures.
The real market data
According to official statistics, car sector revenue increased by only 0.3%, from 46.79 billion to 46.91 billion euros, not by 3% as some reports suggested. Registrations declined by 0.5%, not by 1%. However, the most controversial claim concerns the average car price, which actually increased by just 228 euros (+0.8%), far from the alleged 1,000-euro hike.
UNRAE highlights that discussing the total average price is misleading: this figure is influenced by the mix of models and segments rather than a blanket price increase. If, for example, the market shifted towards high-end cars, the average price would rise without any actual price hike on individual models.
Debunking price myths and market trends
One of the most circulated fake news claims that cars under 14,000 euros have disappeared. However, official data shows that this price range still accounts for 5% of the market. Similarly, cars under 20,000 euros represent 30% of the total market, not 20% as some reports suggest. Moreover, smaller car segments – A and B – still hold significant market shares of 8.3% and 48.1%, respectively.
Another false claim is that discounts have decreased. The reality is that the long-term rental sector – known for its high discounts – has declined. This has lowered the weighted average discount, but private buyers have not experienced major changes.
Long-term price increases: causes and context
Looking beyond 2024, the cost of cars has undeniably risen in recent years. However, this trend has clear justifications:
- More advanced technology: today’s cars include sophisticated safety devices (ADAS) and cutting-edge infotainment systems.
- Higher production costs: raw material prices have increased, with double-digit growth for traditional materials and triple-digit surges for critical components used in modern vehicles.
- Rising energy and logistics costs: car manufacturing is highly energy-intensive, and recent geopolitical crises have significantly raised transportation and distribution expenses.
The idea that automakers are merely inflating prices for profit is unfounded. Instead, prices reflect an evolving market and new production and safety requirements.
What do you think about these figures? Have you noticed a significant increase in car prices? Leave a comment below and share your thoughts!