The analysis of sales volumes and price movements in the five largest European countries predicts that manufacturers will be able to make larger price increases over the next half-year.
Robin Goodyer, operations director at eurocarprice.com, which carried out the analysis, said: ‘The overall European market is now showing signs of recovery as the declines in German and French sales recede. We expect pre-tax price increases in Germany to rise from their current level of 1.7%.
‘Higher price increases are also expected in the UK, where the market is likely to reach another record level in 2004. Italian market price increases are likely to climb slightly higher and Spanish price increases will remain at a high level while the market there remains strong.’
Goodyer added that France is likely to see the lowest level of car price increases, expected to stay in the 1.6% to 1.8% range.
‘The market still has a long way to climb back to buoyant levels after previous high price increases,’ he said.
On individual countries, the report says:
The report is based on data from JATO Dynamics showing price movements to July 2004 and annual volumes movements to May 2004.
Figures also show the ‘winning and losing’ manufacturers in each country in terms of sales and price movements over the previous 12 months.
Goodyer added: ‘This quarter’s report demonstrates a clear correlation between sales volume movement and price increases. The market with the highest volume growth (Spain) has seen the highest price rise and the market with the highest volume fall (France) has experienced the lowest price rise, with the other three markets falling into the pattern.’
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