AUTOMOTIVE STUDY 2025 / Šaroch (ed.) et al.

3.6 Sector trends from a price development perspective e period since the coronavirus pandemic has not only been a time of signi cant economic shocks and operational consequences for the automotive industry. Electric vehicles have become much more prevalent in the new car market and are slowly making their way into the used car market. Car dealers in the EU are being impacted by emissions regulations, which are changing the balance between combustion and alternative fuel vehicles. On top of this, a wave of in ation that has not been seen for decades has swept the world. All of this is now having an impact on the pricing of cars in new car sales and, consequently, on the secondary market. is chapter describes the development of car prices in the Czech Republic, but also the producer prices of car manufacturers and parts suppliers. Development and overview of car prices in the Czech Republic Eurostat data on the development of prices of new and used motor vehicles in the Czech Republic show that new cars started to become more expensive in 2021, when prices increased by 4% year-on-year, and then especially in 2022, when their prices increased by 8%. In 2023, price growth continued to be relatively strong at 6%. On the other hand, the average price dynamics for new cars over the 2020-2023 period was lower than the overall price growth in the Czech Republic (average price growth of 5.3% for new cars vs. 8.4% average growth in overall in ation over the 2020-2023 period). Used cars in the Czech Republic saw signi cant price increases already in 2020 (+6%), but in 2021 their prices jumped by another 10% and in 2022 by a signi cant 16%. In 2023, however, a price correction of 3.5% came with a slight cooling of demand on the secondary car market. Even the average growth in used car prices was lower than overall in ation in the country over the period 2020-2023. Fig. 3.35: New and used car prices in the Czech Republic and headline inflation (annual % change)

Source: Eurostat; Note: headline inflation rate = Harmonised Index of Consumer Prices

87