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| The Audi TT - - a product of VW Group, Europe's top carmaker |
Ireland had one of the fastest-growing new car markets in Europe in 2005 and there were signs of price increases accelerating in Q1 2006, according to European motor data company Roadtodata in association with Nottingham Business School.
Average prices for diesels increased by 2.2% as diesel sales grew by nearly 20% compared to a year earlier, taking diesels' share of the Irish new car market to 21%.
Petrol model sales grew much less quickly, by only 5%, with petrol vehicle prices increasing by 1.7%.
Average car prices in Ireland are 30% higher than in the rest of the 12-country euro currency zone.
Most of the increases in volumes were in the mid sized segments of the market with SUV sales up 27%. Although Mini segment prices increased by 17%, this segment is very small in Ireland.
European Summary:
Price increases slow to 2.9% as total sales fall 0.5% in 2005.
The rate of increase in average car prices throughout Europe slowed significantly in the first quarter of 2006, as total sales in 2005 fell short of the annual market in 2004.
Prices increased by 2.9% in the 12 months to April. By comparison, the rate of increase in the two preceding quarters was 4.4% in Q3 and 3.4% in Q4.
Prices for diesel cars continued to rise faster compared with those for petrol cars: by 3.1% and 2.7% respectively.
Portugal overtook Italy in Q1 as the market with the highest rate of increase in new car prices. The UK saw the second-highest increase in prices, even though the market continues to decline. Denmark has the highest car prices in Europe, at 93% more than the average for the euro currency zone. Switzerland is the least expensive market, with new car prices 10% below the 'eurozone' average.
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| 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 |
Average prices fell in Poland and the Czech Republic as sales continue to fall in Eastern and Central Europe.
Sales performances across Europe as a whole remained varied in 2005. In the 'Big Five' markets, sales volumes were slightly up in Spain and France, flat in Germany and down in Italy and UK.
In Scandinavia, Denmark again continued to experience higher market growth than any other market in Europe but sales volumes in Norway, Sweden and Finland remained level or declined.
Sales in Eastern Europe continued to be poor, particularly in Poland where the market was down more than 18% in 2005 compared with 2004.
Although diesel vehicles are still likely to overtake petrol as the primary fuel-type for new passenger vehicles in Europe during 2006, it appears that diesel sales are starting to level out. In the last quarter, for the first time in several years, diesel cars' share of the market actually fell by 0.4%. Diesels took 48.4% of total 2005 sales compared with 48.8% in 12 months to September 2005.
Following the trend of the previous quarter, the only segment that increased sales overall was the Lower Medium segment (+3.6%). Sales of MPVs and SUVs continued to grow but, at 5%, the rate of increase has slowed considerably.
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 |
17% |
3.2% |
|
-12.9% |
-6.9% |
| Small |
2.8% |
4.1% |
|
-4.7% |
-2.5% |
| Lower Medium |
1.5% |
3.3% |
|
11.7% |
3.6% |
| Upper Medium |
1.9% |
2.2% |
|
11.6% |
-2.5% |
| Compact Executive |
2.2% |
3.7% |
|
11.5% |
-2.4% |
| Executive |
0.4% |
1.7% |
|
7.9% |
-2.2% |
| Luxury |
0.8% |
3.6% |
|
-9.6% |
-1.8% |
|
|
|
|
|
|
| Hatchback |
4.7% |
3.8% |
|
3.4% |
-2.1% |
| Sedan |
1.1% |
2.4% |
|
0.1% |
-3.6% |
| Wagon |
7.6% |
2.6% |
|
-8.7% |
-2.5% |
| MPV |
2.3% |
2.5% |
|
-1.1% |
5.4% |
| SUV |
0.8% |
2.5% |
|
-4.2% |
5.5% |
|
|
|
|
|
|
| Petrol |
1.6% |
2.7% |
|
5.0% |
-4.2% |
| Diesel |
2.2% |
3.1% |
|
19.9% |
4.4% |
|
|
|
|
|
|
| Overall |
1.7% |
2.9% |
|
7.9% |
-0.1% |
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 |
90 |
1.2% |
-0.7% |
| Hungary |
92 |
1.1% |
-4% |
| Czech Republic |
94 |
-0.6% |
-1.5% |
| Belgium |
94 |
3% |
-3.1% |
| France |
95 |
2.3% |
2% |
| Greece |
95 |
2.7% |
-2.1% |
| Sweden |
95 |
1.5% |
0.3% |
| Poland |
96 |
-0.5% |
-18.3% |
| Germany |
97 |
2.8% |
0.2% |
| Spain |
97 |
3.3% |
1.1% |
| Italy |
99 |
2.7% |
-2% |
| United Kingdom |
100 |
5.6% |
-2.4% |
| Austria |
101 |
1.3% |
0% |
| The Netherlands |
118 |
0.3% |
-1.2% |
| Finland |
128 |
1.9% |
0.1% |
| Portugal |
128 |
6.3% |
1.5% |
| Ireland |
130 |
1.7% |
7.9% |
| Norway |
167 |
2.2% |
-1.4% |
| Denmark |
193 |
0.7% |
8.1% |
| European Average |
100 |
2.9% |
-0.1% |
Note
Price movements compare average prices at April 1st 2006 with prices at April 1st 2005
Volume movements compare registrations in the 12 months to December 2005 with 12 months to December 2004.
