In Germany, there are fewer and fewer cheap small cars. Only four models priced below 15,000 euros are currently available. This also exposed the problems of German manufacturers.
If you want to buy a cheap small car in Germany, you have few options: according to the German General Motors Club (ADAC), there are currently only four models available for less than 15,000 euros. “Rising car prices and the phase-out of many subcompact and small car models have resulted in a dearth of cheap cars,” ADAC explained.
Only four models priced below €15,000
According to ADAC, the Dacia Sandero is the cheapest small car on the German market, with prices starting at 11,300 euros. The Fiat Panda, Citroen C3 and Mitsubishi Space Star are also priced below 15,000 euros. However, car testers have complained about “sparse equipment” and poor safety systems in the Mitsubishi Space Star and Fiat Panda Hybrid.
In addition, four small cars that are still cheap have seen price increases in recent months. “Mitsubishi has grown by 47% and Fiat has even increased by 61%,” ADAC said. Since 2019, the price of the Sandero has risen by 62%. Experts explain that this development is problematic: “Automakers should continue to offer affordable cars and a wide range of models.”
is a small car lower profit
The ADAC figures also shed light on the current crisis facing German automakers. Thomas Peckruhn, vice-president of the Central Association of the German Automobile Trade (ZDK), said orders from almost all manufacturers in the sector were 30% to 50% lower than last year.German automakers are increasingly losing ground to their host of new Chinese rivals, notably BYD and EV pioneer Tesla – especially in electric vehicles
No local group currently offers small cars for less than 15,000 euros. Especially in the field of electric vehicles, although German companies claim to want to make electric vehicles affordable for everyone, they have not been able to keep up. For example, the Opel Corsa costs twice as much as its internal combustion engine counterpart.
In addition, German automakers rely mainly on large SUVs rather than small cars. And for good reason, as small cars have lower profit margins than larger SUVs. A former VW manager reported to Handelsblatt that for a long time the ID.3 had barely captured two to three percent of sales in the automaker’s coffers – despite the fact that the ID.3 base version costs 39,995 euros.