 |
| 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 |
The latest quarterly survey by the ROADTODATA Euro Index shows that the average price of a new car in Ireland increased by 1.9% during the 12 months to September 2006.
By comparison, average new car prices across Europe as a whole increased by 0.9% over the same period.
New car prices in Ireland are now 29% higher than the average price of new cars in the euro currency zone.
Rick Yarrow, Director of Analysis Services for ROADTODATA, commented on price trends in Ireland:
"Ireland was the fastest-growing new car market in Europe until recently but sales growth has slowed to a rate of 5.9%. Price increases crept up slightly in the third quarter of 2006 and stood at 1.9% higher than a year earlier. The highest increases in volumes were in the Mini. Diesel models accounted for most of the market growth, with diesel registrations up 24% Prices in Ireland, however, remain very high in relation to Europe. New cars cost 29% more, on average, than in the rest of the euro currency zone, largely due to the 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 |
+0.7% |
-1.4% |
|
+61.4% |
+6.7% |
| Small |
+3.6% |
+2.4% |
|
+17.5% |
-2.8% |
| Lower Medium |
+1.4% |
+0.5% |
|
-3.9% |
+0.3% |
| Upper Medium |
+1.2% |
+1.5% |
|
+9% |
+3.2% |
| Compact Executive |
+2.2% |
+1.4% |
|
-1% |
-5.1% |
| Executive |
+3.6% |
+1.2% |
|
+5% |
-5.8% |
| Luxury |
+1.7% |
+0.4% |
|
-6.3% |
-3.7% |
| |
|
|
|
|
|
| Hatchback |
+1.9% |
+1.6% |
|
+4.8% |
-2.2% |
| Sedan |
+2.1% |
+1.0% |
|
+4.3% |
-5.7% |
| Wagon |
-0.6% |
+0.9% |
|
+9.9% |
+3.1% |
| MPV |
+1.8% |
+1.1% |
|
+2.1% |
+3.5% |
| SUV |
+1.6% |
-1.3% |
|
+10.9% |
+8.4% |
| |
|
|
|
|
|
| Petrol |
+1.9% |
+1% |
|
+0.7% |
-1.8% |
| Diesel |
+1.8% |
+0.8% |
|
+24.1% |
+1.3% |
| |
|
|
|
|
|
| Overall |
+1.9% |
+0.9% |
|
+5.9% |
+1% |
European Market Overview: Modest upturn in sales offset by still-weakening prices across the region
New car prices across Europe were at their weakest for over two years in the third quarter of 2006.
Against the backdrop of a return to modest growth in regional sales (up 1% compared with the same period in 2005), annual price increases slipped from 1.3% in Q2 to 0.9% in Q3.
In fact, prices actually fell in five markets - this is the largest number since the Euro Index was launched in 1998. Sweden recorded the largest fall in prices (down 2.2% year-on-year). Prices also fell in Italy (down 1.7%); the Czech Republic (down 1.3%); the Netherlands (down 1%) and Poland (down 0.2%).
The markets where new car prices rose most quickly compared to a year ago were Portugal (average prices up 3.5%) and France (up 2.9%).
In general the picture emerging is that the majority of the larger markets (with the notable exception of Italy) are experiencing above average price increases while the rate of increase is weak or non-existent in the smaller Scandinavian and eastern European markets.
The Mini segment, which was up by 13.1% was the main driver for growth across Europe's new car markets. Estate car (wagon) sales are showing signs of a recovery and are now growing faster than MPV sales. However they account for 13.1% of the total market for new cars compared with MPVs' 19.4% share.
New car sales fell in 10 out of the 19 countries covered by the survey. Of the "Big 5" markets, Italy was by far the strongest, showing a growth of 7.6%. Sales were also up in Germany (up 1.3%) but down in the UK (by 4.2%) and France (down 1.2%). In Spain, where the growth over the last 2-3 years has clearly now come to an end, the new car market was 1.2% smaller than a year earlier.
In Scandinavia, Denmark continued to experience the largest market growth in Europe. Sales in Sweden and Finland recovered but Norway is still declining.
Sales in Eastern Europe continued to be poor. Sales in Poland recovered slightly but were still down 11.3% year on year.
The diesel share of the total European market has not yet reached 50%. It is currently 49.3% and appears to have stabilised at this level.
Price Trends, 12 months to September 2006
The table below shows recent price trends in each segment, by body style, for the whole of Western Europe. The percentage figure is the year-on-year increase or decrease in prices for each segment. The arrows show whether the current trend (over the last three months) is for prices to rise or fall at a faster rate. Source data is provided by ROADTODATA.
| |
% Change Last 12 Months |
Recent
Trend |
|
Hatchback |
Sedan |
Wagon |
MPV |
SUV |
| Mini |
-1.4% |
 |
|
 |
 |
|
|
|
| Small |
2.4% |
|
|
|
|
|
|
|
| Lower Medium |
0.5% |
|
|
|
|
|
|
|
| Upper Medium |
1.5% |
|
|
|
|
|
|
|
| Compact Executive |
1.4% |
|
|
|
|
|
|
|
| Executive |
1.2% |
|
|
|
|
|
|
|
| Luxury |
0.4% |
|
|
|
|
|
|
|
| All |
0.9% |
|
|
|
|
|
|
|
Key to chart
Rate of price change is increasing compared to previous quarter
Rate of price change is decreasing compared to previous quarter
Rate of price change is static compared to previous quarter (+/- 0.1%)
Body style not relevant to segment
European Summary:
Modest upturn in sales offset by still-weakening prices across the region
New car prices across Europe were at their weakest for over two years in the third quarter of 2006.
Against the backdrop of a return to modest growth in regional sales (up 1%), annual price increases slipped from 1.3% in Q2 to 0.9% in Q3.
In fact, prices actually fell in five markets - this is the largest number since the Euroindex was launched in 1998. Sweden recorded largest decrease (prices down 2.2% year on year). Prices also fell in Italy (down 1.7%); the Czech Republic (down 1.3%); the Netherlands (down 1%) and Poland (down 0.2%).
The markets where new car prices rose most quickly compared to a year ago were Portugal (average prices up 3.5%) and France (up 2.9%).
In general the picture emerging is that the majority of the larger markets (with the notable exception of Italy) are experiencing above average price increases while the rate of increase is weak or non-existent in the smaller Scandinavian and eastern European markets.
The Mini segment, which was up by 13.1% was the main driver for growth across Europe's new car markets. Estate car (wagon) sales are showing signs of a recovery and are now growing faster than MPV sales. However they account for 13.1% of the total market for new cars compared with MPVs' 19.4% share.
New car sales fell in 10 out of the 19 countries covered by the survey. Of the "Big 5" markets, Italy was by far the strongest, showing a growth of 7.6%. Sales were also up in Germany (up 1.3%) but down in the UK (by 4.2%) and France (down 1.2%). In Spain, where the growth over the last 2-3 years has clearly now come to an end, the new car market was 1.2% smaller than a year earlier.
In Scandinavia, Denmark continued to experience the largest market growth in Europe. Sales in Sweden and Finland recovered but Norway is still declining.
Sales in Eastern Europe continued to be poor. Sales in Poland recovered slightly but were still down 11.3% year on year.
The diesel share of the total European market has not yet reached 50%. It is currently 49.3% and appears to have stabilised at this level.
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 |
| Hungary |
87 |
+2.2% |
-1.2% |
| Greece |
89 |
+0.7% |
-3.6% |
| Switzerland |
90 |
+1.8% |
+1.2% |
| Poland |
94 |
-0.2% |
-11.3% |
| Italy |
94 |
-1.7% |
+7.6% |
| Belgium |
95 |
+2.7% |
+8.7% |
| France |
96 |
+2.9% |
-1.2% |
| Germany |
96 |
+1.1% |
+1.3% |
| Czech Republic |
96 |
-1.3% |
-7.3% |
| Spain |
96 |
+1.7% |
-1.2% |
| Sweden |
98 |
-2.2% |
+5.1% |
| United Kingdom |
103 |
+1.3% |
-4.2% |
| Austria |
105 |
+2.6% |
-2.1% |
| The Netherlands |
116 |
-1% |
+1.2% |
| Portugal |
128 |
+3.5% |
-6% |
| Ireland |
129 |
+1.9% |
+5.9% |
| Finland |
131 |
+0.8% |
+0.7% |
| Norway |
160 |
+1.3% |
-7.2% |
| Denmark |
195 |
-0.1% |
+12% |
| European Average |
100 |
+0.9% |
+1% |
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.
