Bad for customers – that’s why new cars are now significantly more expensive

Due to the supply problems with semiconductors, new car production is currently stalling worldwide. The range of freshly produced vehicles is therefore limited, and at the same time customers are in the mood to buy. The result is clear: prices are rising across Europe. And by up to ten percent, according to a study by the credit insurance company Acredia and Euler Hermes.

The production backlog is currently encountering a market that is characterized by the pent-up demand after the corona lockdown. In the first half of the year, new registrations in Europe rose by 25 percent to almost 5.4 million cars. Without a lack of chips, it could possibly have been more. However, the cars are missing: The industry association VDA is anticipating a loss of production of 600,000 vehicles in the German plants alone for the year as a whole.

“This gives automobile manufacturers a unique opportunity to raise prices after almost 20 years and to significantly improve their margins,” the study says.

“Due to the shortage of chips, the European and German carmakers are currently on the longer lever,” says Acredia boss in Austria, Gudrun Meierschitz. “A price increase of three to six percent is therefore currently possible across Europe, at least until the state of emergency for semiconductors normalizes again.” For Germany, Acredia is even anticipating a price increase of up to ten percent.

The Center Automotive Research (CAR), which regularly examines the discount level on the German new car market, had previously determined that the low supply had an impact on prices. In June and July it was already unusually low. And the prices for second-hand vehicles have also recently increased among our neighbors, as new car buyers are switching to young used ones.

Sales are also increasing in Austria
For Austria, current statistics from Statistics Austria show that new car registrations have increased by 12.2 percent since the beginning of the year compared to 2020. 154,298 cars were newly registered in the first seven months, exactly two thirds of them were company cars. The share of legal persons, companies and local authorities in the newly registered electric cars was even higher, namely at 84.1 percent (14,585 vehicles). Statistics Austria calculated that only 2,752 cars with electric drive were newly registered by private vehicle owners.