In the past world, where there was no pandemic yet, buying a new car for 10,000 euros was within the realm of possibility. At the time, almost all of the mainstream brands offered vehicles at “lower cost” and much more affordable prices.

An era that seems to be over when you read the latest manufacturers’ catalogs and what we bring you weekly in Auto Plus magazine. from now on the minimum often exceeds 15,000 euros. That is, inflation, which can exceed 50% in just three years.

Residents of the city are on the front line

At the end of 2019, the offer of city cars (even mini-city) was in excess: Citroën C1, Ford Ka+, Peugeot 108, Suzuki Celerio… About ten models were fighting in this segment.

today, only Korean brands (Hyundai i10 and Kia Picanto) and Fiat still believe in this niche. Others have left it (Citroën, Ford, Peugeot and Suzuki) or are no longer present, except for an obsolete model that will not be replaced (Renault Twingo, etc.).

Several manufacturers have moved their most affordable cars upmarket. So, at Alfa Romeo, the Giulietta compact sedan gave way to the Tonale SUV. The crossover craze has had similar consequences elsewhere. At Suzuki, the Celerio was replaced by the Ignis, while the Toyota Aygo became the Aygo X, and the DS 3 became the DS 3 Crossback (renamed DS 3 from this year).

The entry-level trim is gone

The race for equipment that customers have succumbed to has, for its part, embraced the less equipped versions, and therefore the cheapest. Who today will buy a new car without power windows, air conditioning or even a touchscreen multimedia system?

Thus, Opel Corsa and Volkswagen Up! drew a line under their basic decorations. From now on, these two Germans offer no less than the Edition and Active versions, which, in particular, offer air conditioning and alloy wheels. When appeal versions are still around, their prices often skyrocket.

This is especially true of the Peugeot 208 1.2 liter PureTech 75 hp. which at the end of 2019 cost 14,880 euros, compared to 17,860 euros today (+ 20%). That’s a lot, even if it gained some standard equipment in the process, including air conditioning.

If brands are gradually ridding their line of versions with the cheapest equipment, it is not only because a large part of the customer base wants cars of the “all inclusive” type.

Profitability is greater than volumes

This is also (and primarily?) because at a time when most technological options are automatically equipped throughout production without necessarily being activated, these entry-level products no longer deliver enough.

It is no longer a matter of producing cars at any cost. Rising prices for raw materials and difficulties in obtaining individual components forced manufacturers to reconsider the assembly method. From now on, we must produce less, but better. In other words, we should be more profitable. This is evidenced by the stunning profits made by the car groups, while the production of most of them is still lower than it was before the pandemic.

Between December 2019 and February 2023, according to the data we regularly publish in the magazine, the entrance ticket for 20 brands increased by an average of 29% ! During the same period, inflation in France was less than 9%. Suffice it to say that a new car is now an unaffordable luxury for an increasing number of customers.

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