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News : Irish Last Updated: Dec 19th, 2007 - 13:17:15


Ireland’s new car market is the fastest-growing in Europe; Prices 28% above European average
By Finfacts Team
Aug 15, 2006, 12:41

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The Audi TT - - a product of VW Group, Europe's top carmaker
Ireland’s new car market is the fastest-growing in Europe. It increased by 8.4% in the 12 months to June 2006.

Price increases stood at 1.7% higher than a year earlier.

The largest increases in volumes were in the Mini segment. SUV sales were up by 21%. Diesel models accounted for most of the market growth: they increased by 25%.

Prices in Ireland however remain very high in relation to Europe (28% higher), largely because of high taxation levels.

Rick Yarrow, Director of Analysis Services for ROADTODATA, commented on price trends in Ireland:

"Ireland’s new car market was the fastest-growing in Europe. It increased by 8.4% in the 12 months to June 2006.

"Price increases stood at 1.7% higher than a year earlier.

"The largest increases in volumes were in the Mini segment. SUV sales were up by 21%. Diesel models accounted for most of the market growth: they increased by 25%.

"Prices in Ireland however remain very high in relation to Europe (28% higher), largely because of high taxation levels."

Table 1: Ireland and Europe new car market: overall change in prices and volumes by segment and body style over last 12 months:

  Price Movement   Volume Movement
  Ireland Europe   Ireland Europe
Mini 1.3% -0.7%   33.5% 1.5%
Small 2.6% 1.3%   10% -4.7%
Lower Medium 1.6% 1.1%   2% 1.1%
Upper Medium 0.9% 1.2%   13.5% 1.8%
Compact Executive 2.3% 1.6%   2.2% -7.3%
Executive 2.6% 1%   6.2% -8.2%
Luxury 1.2% -0.6%   -10.2% -6.2%
           
Hatchback 1.9% 0.8%   7.2% -3.8%
Sedan 1.8% 2.8%   8.1% -8.4%
Wagon -0.8% 3.6%   17.7% 1.5%
MPV 1.2% 1.6%   0.3% 4.8%
SUV 1.2% 2.5%   20.6% 11.1%
           
Petrol 1.7% -4.6%   3.0% 1.0%
Diesel 1.6% 2.6%   24.7% 1.5%
           
Overall 1.7% 1.3%   8.4% -0.8%

European Summary:

Accelerating slow down in sales and price increases

The slow down in both prices and volumes in European new car market continued in the second quarter of 2006.

Overall new car prices increased by 1.3%% compared with 2.9% at the end of the first quarter. This was the lowest annual rate of price increase for two years.

New car sales in Europe fell 0.8% in the 12 months to March 2006. At the time of our previous quarterly report, the decline was only 0.1%. The largest market declines were mainly at the top end of the market with Executive car sales down over 8%. There was a small recovery in the Medium segments.

The figures on the map show the level of average new car prices in each market compared to the average for all euro currency markets. Index 100 represents the European average


New car sales fell in 11 out of the 19 countries covered by the survey.

In the "Big Five" markets, there was a dramatic turnaround in price trends in Italy. From having the highest increases in Europe, prices fell to below their level of a year earlier. Prices in the UK rose by only 0.5% but in Spain, Germany and France they increased slightly faster than the European average.

The UK was the only "Big 5" market where sales were down (by 4.2%). Sales increased year-on-year in the others: Italy up 4.1%, Germany up 3.8%, Spain up 2.4% and France up 1.7%.

Price increases in Scandinavia, at less than 1% a year, were below the European average. Denmark again experienced the largest market growth in Europe but sales declined in Norway, Sweden and Finland.

In Eastern Europe prices remained virtually static in Poland and Hungary and dropped slightly in the Czech Republic. Sales in Eastern Europe continued to be poor, particularly in Poland where the market was down by more than 20%.

Prices for diesel cars continued to rise more quickly (by 1.5% a year) compared with those for petrol cars (1.0%). Diesel's share of the European new car market has now levelled off at 49% and has been at this level for the last nine months.

Table 2: European New Car Prices relative to eurozone average (Retail Price Index) and % changes in prices and sales volumes over last 12 months

  Retail Price Index Price Movement Volume Movement
Switzerland 89 2.8% 0.7%
Hungary 91 0.1% -1.4%
Czech Republic 93 -0.3% -2.3%
Belgium 93 2.7% 7.3%
France 94 1.9% 1.7%
Greece 94 1.1% -6.6%
Sweden 94 0.5% -5.5%
Poland 95 0.3% -20.2%
Germany 96 2.2% 3.8%
Spain 96 2% 2.4%
Italy 98 -1.4% 4.1%
United Kingdom 99 0.5% -4.2%
Austria 100 1.8% 0.3%
The Netherlands 116 1.3% -0.9%
Finland 127 1.2% -4%
Portugal 127 4.6% -8.1%
Ireland 128 1.7% 8.4%
Norway 166 1.2% -12.2%
Denmark 191 0.8% 7.1%
European Average 100 1.3% -0.8%

Note

Price movements compare average prices at June 1st 2006 with prices at June 1st 2005
Volume movements compare registrations in the 12 months to March 2006 with the 12 months to March 2005.


© Copyright 2007 by Finfacts.com

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