04/12/2025
How can the price of new cars be lowered? The opinion of the British and the French
By Xavier Champagne
Chef de rubrique
Among the various ways to lower the prices of new cars, manufacturing in the least expensive countries is necessary, “even if this has a negative environmental or social impact,” for a majority of Europeans (56%), 60% of the British and even the French (52%), according to the latest survey by the Observatoire Cetelem.
This year, the annual survey of the Observatoire Cetelem(*) looked at the barriers to purchasing new vehicles and the ways to ‘bounce back’.
Unsurprisingly, 94% of French people find prices for new cars high, similar to the 93% of British who gave the same answer. This is also the view of a large majority of other Europeans and Americans, but not the Chinese (only 55%).
The price increase ‘is not justified’, according to 71% of French people, 60% of British people, and 61% of Europeans (compared with 18% of Chinese).
Do new cars nevertheless offer good value for money? Yes, according to 57% of the British and for the majority of the Europeans (55%), with the exception of the French (49%) and Germans (49%). 89% of Chinese and 86% of Turks think so.
To bring prices down, there are purchase subsidies in various countries, but 68% of Europeans, and as many as 73% of French people, and 64% of British people (compared to 19% of Chinese people), consider them ‘unclear’. Furthermore, 73% of Europeans, and as many as 79% of French people, 68% of British people (compared to 43% of Chinese people), believe that these subsidies ‘change all the time’.
To bring prices down, 56% of Europeans are in favour of simpler vehicles (fittings, design, power), and as many as 66% of French people or 52% of British people (compared to 29% of Chinese and 26% of Turkish people). Similarly, 72% of Europeans are in favour of relaxing certain standards and regulations to bring prices down, including 75% of French people and 64% of British people.
To lower prices, 86% of motorists are willing to lower their purchasing criteria. Among them, 32% are willing to reduce customisation options (colours, wheels, upholstery, etc.), especially in Portugal (40%), France (38%) and Italy (36%). Germans and Poles are more resistant to such sacrifices. Other factors cited include driving aids (26%), vehicle size (24%), audio and multimedia systems (23%), on-board technology (21%) and vehicle performance (engine power) (21%). On the other hand, only 12% are willing to sacrifice the vehicle's range (if it is electric).
The most surprising response from motorists is as follows: production must take place in the cheapest countries, ‘even if this has a negative environmental or social impact’, according to a majority of Europeans (56%), to 60% of British and even the French (52%). ‘Young people are by far more favourable to the idea than their elders, as are residents of large cities compared with those in rural areas,’ comments the Observatoire Cetelem.
The Chinese (71%) and Turks (79%) are very much in favour, given that they have unmatched labour costs. The Germans are divided (50%). Only the Japanese display industrial patriotism (42%), as shown in the graph below.
Other solutions are good for lowering prices: public purchase subsidies for 77% of British people; price controls by the state for 74% of British people; subsidies to manufacturers for 62% of British people, etc.
A third of Europeans have a negative image of car dealers
The survey also looked at car dealers. 67% of Europeans (and French people), and 57% of the British people have a positive image of car dealers (meaning that a third have a negative image), particularly Spaniards (74%) and Portuguese (72%). This is lower than in China (81%) but higher than in the United States (61%).
Motorists have the least confidence in car dealers' ability to ‘offer you competitive prices’ (64% compared to 73% for their ability to ‘understanding your needs’).
46% of Europeans say they could buy a new car ‘entirely on the internet’ (including payment and delivery), including 43% of French people and 50% of British people. The main reason for not doing so is the inability to test drive the vehicle. The Chinese (79%), Germans (60%) and Americans (60%) are the most inclined to do everything online.
(*) Surveys were conducted online and simultaneously by Harris Interactive in 13 countries (9 in Europe, as well as Turkey, Japan, China and the United States), with 13 representative samples of the national population of each country, aged 18 and over, interviewed from 30 June to 11 July 2025.
