Cheap cars can be counted on the fingers of one hand. The era when the market offered new cars for moderate amounts of money is long gone. The average price of a new vehicle in Spain, taxes included, has grown from 21,829 euros in 2022 to 23,666 euros in 2023, according to data provided by the Tax Agency. This increase of 8.17% confirms an upward trend that has persisted for years and that in recent years has been aggravated by the microchip crisis and the economic decline caused by the pandemic.
The rise in prices of new cars may undergo a new acceleration from July when the mandatory implementation of ADAS systems becomes normative. On July 6, European regulations come into force that require cars and light vans sold in Europe to incorporate 7 driving assistance systems. These ADAS were already required from 2022 to newly approved vehicles, but not to the rest. In addition, black boxes are made mandatory, which until now were only optional in newly approved vehicles.
The two-year window that the European Union has given manufacturers to adapt production to the new regulations would not necessarily indicate a significant increase in vehicle prices. For some time now, many cars have mostly incorporated ADAS, which will be mandatory from July 6. Sources from the automobile manufacturers’ association Anfac assure Moveo that 85% of the models sold in Spain already incorporate the involuntary lane change warning as standard; 80% the emergency braking system; and 62% intelligent speed assistance.
The rest of the mandatory ADAS are as follows: rear camera with cross-traffic detection, emergency braking lights, anti-start breathalyzer, and driver drowsiness and loss of attention motorization system. To all of them will be added the black box that records a series of data, such as speed, braking and turns, which can be used later in the event of an accident.
Seat applauds the implementation of these new ADAS systems aimed at increasing the level of safety in cars. “The European Commission estimates that traffic accidents are 95% due to human error, so the implementation of driver assistance systems that act in these situations has a direct impact on improving safety.”
The Spanish brand admits that for approximately a decade the introduction of ADAS systems in its vehicles has been progressive and continuous. “Emergency braking, sign recognition, blind spot detector, emergency call (e-Call) or involuntary lane change assistant, as an example, are already part of the equipment of our vehicles.”
Therefore, the Martorell firm considers that the community regulations that will be applied to new vehicles starting in July will have a moderate impact on the price of their vehicles. “The increase in cost will be between 100 and 200 euros, approximately.”
The Faconauto dealer association fears that the measure dictated by Brussels will lead to a slight increase in the price of new cars. A spokesperson for the association emphasizes the importance of the new mandatory ADAS systems, as it “improves safety and environmental efficiency.” However, he does not hide his fear that the adaptation of the new ADAS “anticipates a possible increase in prices, especially in the more accessible range models.”
In any case, dealers hope that after this small rise the price of new cars will decline throughout 2024, “as we have seen in the second half of 2023.”
Renault has not yet determined the price increase that the adaptation of mandatory ADAS systems in its vehicles will imply. “We are analyzing it, but the impact will be limited given the current equipment of our models,” they say from the diamond signature. “On the other hand, the fact that 2024 will be a record year for launches for Renault – we will have 6 new vehicles – and that all of them already comply with the GSR2 regulations is also an advantage.”
The spokesperson for the French brand recalls that safety is “one of the historical pillars that is part of Renault’s DNA.” “Since 1970, we have registered more than 2,000 safety-related patents and we always try to stay one step ahead.”
In this context, the company highlights that one of its current initiatives involves fire departments in the development of their vehicles to make them safer. In the event of a fire, Renault hybrid and electric cars have a system that allows water to be introduced into the heart of the battery and extinguish the fire in less than 10 minutes when the usual time is 3 hours.
