Overview

• Average new-car prices climbed roughly 40% to €41,800 between 2019 and 2024, outpacing a 24% rise in net wages to €32,400.
• Transition to electric and hybrid models accounts for nearly half of the sticker-price increase as affordable entry-level options dwindle.
• The ratio of average car cost to annual income rose from 1.16 to 1.29, coinciding with a 22% drop in new-car registrations.
• Consumers are increasingly relying on financing plans, leasing arrangements or used-car purchases to cope with higher costs.
• Electric vehicles can become more economical than combustion cars after three years due to lower operating expenses, and planned tax changes would raise the company EV fringe-benefit threshold to €100,000.