The index measures the after-tax retail MRSPs of more than 40 representative cars in 19 European countries. In the last 12 months, the average retail price of a car in Western Europe has increased by 4.6%.
The current trend is for European retail car prices to rise more quickly than a year ago. The average pre-tax price of cars in the UK (converted to euros for non-euro currency markets) rose 2.2% in the 12 months to January. Pre-tax prices in the UK are 4% higher than the average for Western Europe and 5% higher than the average for the euro currency zone. Pre-tax car prices in the whole of Western Europe rose 2.8% in the year to January.
The executive segment of the market showed the largest increase in average pre-tax prices in Western Europe during the 12 months to January: 6.4%. The weakest segment was the Mini segment, where prices fell by 1.2%. Average price movements in the main volume segments were: 'Small', -1.2%; 'Lower Medium', +4.7%; 'Upper Medium', +2.5% and 'Executive', +6.4%.