Carmakers are hiking the prices of small cars far above inflation
(Transport and Environment, 6 Nov 2023) Manufacturers have raised prices by thousands of euros – yet claim €200 'Euro 7' pollution fixes make cars unaffordable.
Europe’s five biggest carmakers have raised the prices of their cheapest models by an average of 41% since 2019, new analysis of price data shows. Almost double the cumulative rate of inflation during this period. The price of a Peugeot 208, Seat Ibiza and Renault Twingo, has increased by almost €6,000 – a rise of 37-56%; the more premium Mercedes A and B class models increased in price by over €10,000 (up 38% and 37% respectively). Prices have risen far above levels of inflation or the cost of raw materials and other components.
The price hikes saw carmakers make record profits of €64 billion last year, and they issued record share dividends of €27 billion this year. Transport & Environment (T&E), which analysed the data, said this comes at a time when carmakers have fought to derail new anti-pollution measures – the Euro 7 standard – costing €200 per car, claiming it is too expensive for both them and consumers, and will result in unaffordable price hikes