There are several factors that explain the increase in cars. One of the main ones is the generalized inflationwhich has affected production costs, from raw materials to the energy needed to manufacture vehicles. In addition, the crisis of microchipswhich began in full pandemic and has prolonged more than expected, has generated a mismatch between supply and demand, and has triggered prices.
We must also consider the Transition to the electrification of the Automobile Park. The requirement of stricter environmental regulations has forced manufacturers to invest huge amounts of money in research and development of hybrid and electrical models, whose production costs are higher than those of traditional combustion vehicles. As a result, sales prices have risen to compensate for these investments.
Source: Carlos Arenas Laorga
The first impact of this situation is obviously suffered by consumers. Acquiring a new car is increasingly difficult For most Spaniards. Although general inflation in the last 20 years has been greater than that of cars, Since 2019 the price of cars has shotwith an accumulated general inflation of 22%, compared to a 41% in cars (average of the best selling models). In addition, this increase It has also caused a price increase in used carswhich further aggravates the problem.
A lengthening in the life of vehicles. Drivers try to stretch the durability of their current cars, postponing the purchase of a new one. The economy goes like a rocket, but every time we analyze a sector, we find structural problems.
Source: Carlos Arenas Laorga
The Automobile industry is one of the most important for the Spanish economyboth in terms of employment and contribution to GDP. The danger of the fall in sales could also cause a change in mobility habits. With upward prices, the renting and the carsharing They could gain ground against the traditional purchase of vehicles. In fact, Renting is already one of the most important income of many dealers in front of the traditional sale. More than car concessionaires are banks specialized in car financing.
In the short term, prices do not seem to go down. The electrification of the sector will continue to push the upward costs, and although the crisis of the microchips seems a thing of the past, adjustments in the production are still needed to recover a balance between the supply and demand of all the components.
As technology progresses and competition increases, we may see a normalization of car prices. Meanwhile, the private car could cease to be the option preferred by many citizens. And not for prefering another alternative, but for not having it.