Brussels, 26/07/2011 (Agence Europe) - The European Commission's annual car price report, published on Tuesday 26 July, reveals a narrowing in the price differentials for new cars in 2010 and a slight overall drop of 2.5% in real terms, particularly as a result of the still depressed economic situation. The Commission says, too, that, for the first time in 10 years, the real prices of repair and maintenance services did not increase in 2010, “a sign that the sector has understood the new rules of the game”, said Competition Commissioner Joaquín Almunia.
The report relates to 89 models from 26 makes, representative of all market segments (small, medium and large cars). It reveals a decrease in differences in manufacturers' price lists among member states, the average differential falling from 8.5% in 2009 to 8.2%, while, in the euro area, the average differential remained unchanged at 6.5%. Some price differences, however, remain significant, sometimes 40% and more for the same model in different countries, thereby allowing consumers to make savings by cross-border shopping, the Commission notes. In 2010, Denmark became the country with the lowest car prices in the EU, followed by Hungary, while Germany and Luxembourg remained the countries with the highest prices, 7.7% and 7% above the EU average respectively. In the eurozone, Greece became the cheapest country, with car prices 5.6% lower than the average for the euro area. The report also reveals price differentials by category of vehicle and by make, the situation for the EU as a whole remaining stable for small and medium category cars and converging for the most powerful cars (-1.5% compared with 2009), utility and all-terrain vehicles (-2.9%). In the euro area, the situation appears stable in the most powerful cars category.
In terms of prices in real terms (taking inflation into account), there has been an overall fall of 2.5%, linked to the 5.5% EU-wide contraction in the number of new cars registered (-23.4% in Germany, -9% in Italy and -2% in France, but +3.1% in Spain and +1.8% in the UK). This is the result of the crisis and the end of environmental incentives, the Commission notes. The price fall can be seen across all countries, with the exceptions of Italy and Malta, where prices have remained practically unchanged, and Portugal, where they have risen by 2.6%. The fall in real prices was particularly marked in Slovakia (-17.4%), Bulgaria (-13.5%), Slovenia (-11.6%) and the Czech Republic (-9.0%). In the eurozone, the overall decrease was less marked (-1.5%), largely due to a smaller fall in prices in the large countries: -1.9% in Germany, -0.9% in France, -1.6% in Spain and only -0.2% in Italy.
The Commission is pleased to report that the new rules bringing in greater competition among main dealers and in after-sales services are beginning to bear fruit in that, for the first time in 10 years, repair and maintenance prices have remained stable, indicating that constructors and operators are becoming aware that the Commission will ensure that effective competition is maintained in this area. (F.G./transl.rt)