With more than 14% registrations in one year, the car market is picking up. But new cars are always heavier and more expensive. Car manufacturers are refocusing on the top of the range. This trend has accelerated with the pandemic and the shortage of semiconductors.
The average price of a new car now reaches 41,300 euros (regarding as much in francs) in Germany, according to the daily Handelsblatt, which reports figures from a specialized institute across the Rhine. This is a quarter more than five years ago. Not to mention that the entry-level models, which are less profitable, are gradually being phased out. Mercedes will stop producing the Class A and B in 2025. On the side of Audi, it is the A1 and Q2 models that will go by the wayside.
German brands are not the only ones to focus on top-of-the-range models, however, according to automotive specialist Flavien Neuvy: “In general, manufacturers tend to reduce the range they offer to their customers for a fairly simple reason: the more models there are, the more it costs. When they want to reduce their range, they will obviously target in priority the vehicles which bring them the least money.” The entry-level, or small city cars, therefore pay the price, says Flavien Neuvy. “This is an observation that we have been making for several years now, in particular among European generalist manufacturers,” he observes.
>> Listen also: Podcast – Why are our cars getting bigger and bigger?
Weight gain
Race results: The weight of cars has increased by 50% over the past three decades and their power has doubled, according to Luca Maillard, specialist in vehicle evaluations at the Transport and Environment Association (ATE). Their size has also taken the lift. “It’s quite problematic: entry-level models generally consume less fuel than larger cars, simply because they weigh less,” he says.
According to Luca Maillard, consumer choices partly explain this transformation. But the manufacturers, who are moving towards larger models and abandoning the smaller ones, are no strangers to this either. And their marketing is no exception. “A lot of car manufacturers’ money is spent promoting only large SUV-type models,” he said.
>> Listen to Luca Maillard’s interview:
Fewer potential buyers
These ever more expensive cars continue to fuel manufacturers’ profits, while becoming less accessible to everyone.
“When we look at the past thirty years, sales to individuals have been globally halved,” notes Flavien Neuvy, who speaks of a “collapse”. “Each year, 7 to 8% of households bought a new vehicle in the 1990s. Today, we are at 2-3%, depending on the country.”.
The electric car will not help matters, since it is even more expensive. Households who no longer necessarily have the means to buy new are therefore turning to the second-hand market. This one is exploding. The number of cars is not decreasing on our roads, quite the contrary. They are just getting older.
Sylvie Belzer/friend
