11 August, 2005
Hungary with highest growth in diesel car sales
European car market: Czech Republic is the cheapest, Denmark is the most expensive
Average car prices in Europe are rising more quickly than a year ago, according to the PricewaterhouseCoopers and eurocarprice.com quarterly pricing survey. The growing popularity of diesel cars is behind the acceleration in overall price increases. Europeans are buying more diesels and fewer petrol cars, while diesel car prices are rising faster than those of petrol vehicles.
Diesel car prices were an average of 4.5% higher in June 2005 than in June 2004. Sales of diesel cars in the year to June were 13% higher than in the previous year. Petrol car prices have risen by 3.4% while sales declined by 7%. Across Europe as a whole, the average price of a car increased by 3.9% in the year to June.
Armin Krug, leader of Autofacts divison PricewaterhouseCoopers, said:
"Diesels now account for nearly half of all cars sold in Europe and there is no sign of the trend slowing. Manufacturers usually charge a premium for diesel models over petrol versions, so the inexorable rise in diesel sales will have a positive effect on their total revenues."
Diesels already account for 70% of new car sales in countries like France and Belgium. The largest annual rises in diesel sales were in Hungary (54%), Norway (45%) and Portugal (31%). Only Greece and Poland have seen diesel sales fall compared to a year ago.
According to the PricewaterhouseCoopers European New Car Price Index - a unique volume-weighted measure of relative new car prices - the most expensive car market in Europe is Denmark where new car prices are 94% higher than the euro zone average. The least expensive is Czech Republic, at 8% below average.
Local market summary – Hungary
The car market in Hungary has remained virtually level over the last 24 months.
However, diesel sales have increased by more than 50% although diesels still account for only approximately 15% of the new car market.
There have been mixed performances between different body styles and segments. There appears to be a trend towards larger cars, with the Mini and Small segments showing declining volumes while the Medium and Executive segments have seen some growth - albeit from low levels in the case of the Executive segment. Unlike most markets, MPV sales have not grown over the last 12 months in Hungary.
Average prices in Hungary are currently 4% below the European average. After a period of significant increases 18 months ago, there is very little movement in overall average prices but some segment differences. Prices are dropping most in the Mini segment, while Medium segment prices are increasing slightly.
Other markets overview
The picture for the "big five" markets is mixed. The Spanish market continues to grow strongly, with significant price increases. Sales in France and Germany are rising slowly, with below-average price increases. Italian prices continue to increase significantly despite the market there declining. The UK market is dropping and prices are now also decreasing slightly.
Norway and Denmark are experiencing the largest market growth in Europe. The market in Finland dropped by over 15% in the year to June compared to the preceding 12 months. Prices in these countries are well above the European average, particularly in Denmark, due to exceptionally high levels of taxation, although pre-tax prices are generally lower than in other countries.
Sales fell in Eastern Europe, particularly in Poland and Czech Republic, where price increases were also below average. The UK and the Czech Republic are the only two markets where prices are dropping.
ENDS
PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services for public and private clients. More than 120,000 people in 144 countries connect their thinking, experience and solutions to build public trust and enhance value for clients and their stakeholders.
"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
