Prices for internal-combustion engine (ICE) models have been rising more than those of electric vehicles (EVs) over the past year. Not all vehicle powertrains are affected in the same way, however. Carmakers will have no other choice than to increase prices to support their margins. This will positively affect used-car prices as well – if demand cannot be met on new-car markets, buyers will turn to used models and this supports price realisation. Price rises are being further compounded by a steep ascent of raw-material and energy costs as a result of the Ukraine war.Īutovista24 expects the trend of rising new-car prices to continue as long as supply constraints remain ubiquitous. This rise has been spreading into the automotive sector, underpinned by the ongoing supply shortages of new and used cars. Inflation is rising however, with the latest consensus suggesting it will sit around 7% for 2022 in the European Union and the UK. Although pre-existing supply challenges will continue throughout 2022, and could even persist until 2024, the outlook for the second half of the year has been broadly maintained. Following the disruption caused to manufacturers, such as the BMW and Volkswagen (VW) groups, there have been no major additional production stoppages announced over the last month.Īs the April new-car registration figures were closely aligned with Autovista24’s assumptions and, moreover, yielded no further shocks, the volume forecasts for May and June have only been subtly amended. Italy was in line with expectations and the slightly weaker-than-expected results in France and Germany were almost balanced out by strong performances in Spain and the UK.Īutovista24 assumes that the impact caused by the Ukraine war is lessening, as alternative sources of raw materials and parts are secured. However, the downturns were less severe than in March, albeit only when adjusted for working days in all countries except Spain. ![]() Western Europe’s major new-car markets endured double-digit declines in April as the war in Ukraine continued to disrupt supply chains and delay vehicle deliveries. ![]() New-car supply stabilising, list prices rising It also includes a breakdown of key performance indicators by fuel type, average new-car list prices, as well as sales-volume and active market-volume indices. Nevertheless, residual values (RVs) have gained slightly, apart from in the UK.Īutovista Group’s used-car coverage in the monthly market dashboard features Austria, France, Germany, Italy, Spain, Switzerland, and the UK. Limited used-car supply is combining with weaker demand because of the economic situation, high inflation, and consumer uncertainty stemming from the war in Ukraine. Used-car sales activity cooled in May 2022 across most of the key West European markets, with the sales-volume index even suffering double-digit month-on-month declines in France and Spain.
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