New car prices in Germany rose by 40 percent between 2019 and 2024, leading to a 22 percent drop in sales
- One budget brand raised prices 48 percent but still saw a 19 percent sales boost in.
- German new car prices climbed 40 percent since 2019, pushing many buyers away.
- Affordability dropped 11 percent as wages failed to keep up with vehicle inflation.
Car prices have been creeping up across the globe, and it’s not just your imagination. With automakers juggling tighter emissions rules, electrification costs, inflation, tariffs, and a general economic squeeze, affordability is being quietly pushed aside. Yet in Germany, one automaker has managed to flip the script by raising prices while also growing sales.
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According to data from JATO Dynamics, a particular automaker managed a 48% increase in its average transaction price while also boosting sales by 19 percent in the German market. While the report doesn’t name names, it highlights an average transaction price of around €15,000 (about $17,200), which strongly suggests it’s Dacia.
The Romanian budget brand has made a name for itself by selling sensible, value-driven cars like the Sandero, which happened to be Europe’s best-selling model in 2024.
Still Cheap, Just Less So
Despite the price increases that took place over the past few years, Dacia’s lineup remains among the most affordable in each segment. The brand’s no-nonsense approach to tech, features, and pricing continues to appeal to practical buyers who just want transportation without the showroom fanfare.
In Germany, the Sandero kicks off at €12,490 ($14,300), well below rivals in the small hatchback category. The Spring EV starts at €16,900 ($19,300), the Jogger crossover estate at €17,990 ($20,600), the Duster SUV at €18,990 ($21,700), and the upcoming Bigster SUV lands at €23,990 ($27,400). For buyers tired of bloated MSRPs and unwanted extras, that price ladder looks refreshingly reasonable.
The Broader Market Is Struggling
Dacia’s success stands in stark contrast to the rest of the German market, which is buckling under pressure. According to “The Automotive Pricing Study”, new car prices have jumped 40 percent between 2019 and 2024, while overall sales volumes have dropped by 22 percent.
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The steepest declines are in the sub-€30,000 ($34,400) segment, where genuinely affordable options are thinning out fast. For many consumers, that means stretching budgets for pricier models or bowing out of the new car market entirely.
Electrification Is Driving Up Costs
Much of the price jump can be traced to the rising costs of electrification, combined with broader economic factors. German and European buyers now have more choices among BEVs, MHEVs, and PHEVs than ever before, but those drivetrains come at a premium. Interestingly, the study points out that only about one third of the overall price increase is directly tied to fully electric vehicles.
In the same five-year window, net salaries in Germany rose by a significant 24 percent, but that wasn’t enough to keep pace with car prices, leading to an 11% drop in overall affordability. As a result, more buyers are turning to financing, leasing, or the used car market. The new car market is still moving, but fewer people can afford to play.
Automakers Risk Squeezing Their Own Future
The study points to a longer-term problem: automakers are increasingly reliant on a smaller, wealthier group of buyers. As volume shrinks and prices rise, the pool of potential customers narrows. If affordability continues to erode, so does the foundation for sustainable growth.
Analysts say it’s time for OEMs and dealers to rethink strategies, not just chase margins. Because if the average buyer keeps getting priced out, that next sales record might be further away than anyone wants to admit.
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