Car manufacturers have raised the prices of their cheapest models by an average of 41 per cent since 2019, new analysis of price data shows. Almost double the cumulative rate of inflation during this period.

Europe’s five biggest carmakers appear to be creating a ‘go large’ policy with the price of a Peugeot 208, Seat Ibiza and Renault Twingo, has increased by almost €6,000; and the Mercedes A and B class models increased in price by over €10,000. Prices have risen far above levels of inflation or the cost of raw materials and other components.

Transport & Environment (T&E), which analysed the data, said this comes at a time when carmakers have fought to derail new anti-pollution measures, such as the Euro 7 standard, costing €200 per car, claiming it is too expensive for both them and consumers, and will result in unaffordable price hikes.

Anna Krajinska, vehicle emissions and air quality manager at T&E, said: “In some cases, carmakers have raised the prices of their cheapest models by more than half since 2019. This is way above inflation and other costs, allowing carmakers to make record profits last year at the expense of consumers. Yet they have fought tooth and nail against lifesaving anti-pollution technologies costing only €200 per car. It’s proof that profit will always come before people for the EU’s carmakers.”

While carmakers have systematically increased the price of their cars, the European Council and the Parliament’s Environment Committee have watered down the European Commission’s original Euro 7 proposals. Without action to reverse this, 100 million more highly polluting cars will be sold before 2035 and driven on the EU’s roads for decades to come.

The European Parliament will meet in Plenary on 8 November to vote on its final position on Euro 7 before entering into trilogue negotiations with the European Commission and the European Council. This will be the last chance to increase its ambition for both the Euro 7 and public health in the EU.

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