New cars have an average price of 22,700 euros, 11% more than a year ago
The automotive market in Spain continues to suffer from the effects of the microchip crisis and production rate problems caused by the shortage of these components. Similarly, we need to add the economic uncertainty that determines purchasing decisions, among other things, as overriding factors to reflect that
the accumulated of the year remains negativewith a decrease of 5.8% and 666,247 units in total.
Passenger cars and SUVs achieved sales growth for the third consecutive month with an increase of 11.7% compared to the same month of October of the previous year,
with a total of 65,966 units. However, despite this improvement, the month remains below its pre-pandemic level (October 2019), with a drop of 29.8%, a month in which 93,954 units were sold, according to Anfac figures.
Inflation has slowed demand for vehicle purchases, just at the time of gradual
supply and stock are recovering, so shocked by the component crisis. With an average price of 22,700 euros for a new vehicle, 11% more than a year ago, according to the tax authorities, dealers were able to reduce prices by 15% and still maintain the profitability of their operations, according to MSI data for Sumauto.
According to the analysis of the specialists of vertical automotive portals, the current market has shifted the priority from volume to that of profitability, resulting in less sales but much more profit per unit. However, and although in a smaller volume
especially due to the current situation, production chains have continued to feed distributors who have an increasing number of units, but with a “frozen” demand from private individuals, for which they are forced to divert part of their stock to other channels in order to sell it and avoid congestion . . And here the turning point was the first rise in interest rates last July, which affected not only buyers, but distributors as well, who saw higher financial outlays covering their inventory.
According to
Ignacio García Rojí, spokesman for Sumauto, “the auto market has room to adjust its offerings, have a healthy inventory, and still maintain higher-than-normal profitability. But we also can’t put all our eggs in one basket and register ourselves to feed a used market that also has less demand. Those who need a car buy it, not those who want it. That is why you have to distribute the inventory through channels with balance and common sense and start thinking about strategies to accelerate inventory rotation.”
In the case of self-registrations in particular, they only rose 16% in September to lead to the second-hand market. The same goes for renting a car, which rose 60.9% that same month, a forgotten segment after the pandemic. Instead of,
registrations fell by more than 17%although compared to 2019 due to taking into account the last pre-pandemic year, although it had the nuance of the entry into force of the new WLTP regulations.
For all these reasons, Sumauto warns of the need to reintegrate individuals into the wheel of the market, adjusting supply to make prices more accessible with the aim of stimulating demand and
speed up stock rotationgiven that as much as the used market is fueled by tactical registrations, the truth is that VO sales are also falling, with a 2.5% drop expected for this year.
This situation can negatively affect the price of used vehicles, as with more inventory and less demand, the average number could drop and with it the profitability of the distribution networks that fed their inventory at a much higher cost. than normal. Hence the need, according to Sumauto, to deploy the fleet in a more uniform way between channels and channels
don’t focus on just oneas it is to derive VN to VO.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
