Automotive market shifts as budget vehicle availability declines

The automotive market is experiencing significant shifts in pricing, technology, and vehicle availability. In Germany and Austria, the availability of affordable new cars is declining. Data from ADAC shows that the number of common brand new vehicles priced under 20,000 euros has dropped from 35 models in 2021 to just 16 currently. Notably, no German or Japanese manufacturers currently offer models below this threshold, with the VW Polo priced slightly above at 20,380 euros.

Despite rising costs, the electric vehicle sector is seeing new developments. For the first time, three fully electric models are expected to be available under the 20,000-euro mark in 2026. Additionally, manufacturers like Toyota are offering significant discounts on electric and hybrid models in Europe to boost adoption.

In the used car market, particularly in Argentina, prices have seen drops of up to 30% as the market normalizes following a period of value distortion. While traditional bank financing has declined, private and dealership-led financing options are growing. Meanwhile, in the SUV segment, models like the MG ZS and Dacia Duster remain key competitors for consumers seeking family vehicles under 30,000 euros.