European small car market faces rising prices and shrinking model variety

The small car market in Europe is undergoing significant changes as prices rise and availability of combustion engine models decreases. According to an analysis by ADAC, the average price for a new small car in Germany is projected to reach 24,117 euros by 2026, representing an approximately 80% increase from the 2016 average of 13,557 euros.

In addition to rising costs, the variety of available models is shrinking. The number of small cars with combustion engines has fallen, with several well-known models such as the Ford Fiesta, Citroën C1, and Peugeot 108 having already left the market. Some manufacturers are also shifting their strategy, such as Hyundai, which is transitioning its i20 from a traditional small car to a small SUV.

As a response to market pressures and competition from Chinese manufacturers, some European brands are offering more affordable options. For instance, the Citroën C3 Hybrid is being positioned as a budget-friendly alternative, with promotional offers bringing the price below 20,000 euros for equipped automatic models.