The statement is shocking, but the automobile is gradually becoming a luxury product again. 10 years ago, a Civic sedan (DX) was priced at $15,690. Today, you have to dig deeper to find $11,100 more to acquire this same entry-level model (LX-B).
And we are not yet talking about the inherent costs (transport, preparation, taxes) or its financing. At this point, you just have a Civic that doesn’t run. To move it, you have to maintain it, insure it, register it, fit it and water it. So much for increasing the motorist’s bill a little more. Fix it? It will come. The subject will be relevant, but only once the manufacturer’s warranty ends.
According to a study published last summer by AutoTrader, the average price of a new vehicle in Canada was, across all categories, $66,288. As a result, consumers are massively switching to “second hand” vehicles and preferably to very young models.
Paradoxically, luxury vehicles seem to escape this crisis.
Last year, sales of the most expensive sports cars, sedans and best-dressed SUVs all saw spectacular increases. A sign of growing inequalities?
Since the pandemic, the sum of the amounts linked to the ownership of a new vehicle – and also used – has increased. So much so that many households are demanding a return to a basic “mode of transport” more than ever. Ford, for example, recently promised to meet this demand. The brand with the blue oval does not rule out the idea of producing more financially accessible vehicles. Ford recognizes, however, that this will not materialize in the short term, unlike Tesla, for example. Elon Musk’s firm intends to produce an entry-level model likely to compete with the offerings of Chinese automobile manufacturers before they arrive on the North American market.
Economy class
So far, manufacturers have turned a deaf ear to this demand. In North America, at least. The industry prefers to point the finger at those governments which continue to tighten the rules or impose complete electrification of the vehicle fleet without assessing the consequences or the dangers.
What manufacturers don’t say is that they have focused on high-value models and completely abandoned the subcompact and other economy-oriented segment. Under what pretexts? These vehicles bring in (almost) nothing, but above all the customer now demands more comfort and more safety. The responsibility of manufacturers is no longer to power the entire planet, but to satisfy their shareholders. Moreover, during the pandemic, the shortage of raw materials and semiconductors made the industry understand that producing less allowed it to sell at a higher price.