Irish car prices rise by 3.4% - survey

Average retail prices for new cars in Ireland rose 3.4 per cent during the 12 months to July. A survey of the average retail car prices in Ireland last month by Pricewaterhouse- Coopers and eurocarprice.com Index shows that average prices last month were 29 per cent higher than the average for western Europe and 31 per cent higher than the average for the euro currency zone.

The index, based on data from JATO Dynamics, measures the retail price of more than 100 representative cars in 19 European countries. In the last 12 months, the average retail price of a car in Western Europe has risen by 4.2 per cent.

The strongest movement in retail prices was in Denmark where they rose by 7 per cent over the 12 months to July. The weakest price movement was in Hungary where retail prices decreased by 3.2 per cent.

The medium car segment of the market - dominated by cars like the VW Golf, Ford Focus and Toyota Corolla - showed the largest increase in average pre-tax prices in Western Europe during the 12 months to July: 8.9 per cent.

The lowest price rise - 1 per cent - was in the supermini segment.

Robin Goodyer, operations director of eurocarprice.com, said: "The trend to 'fashion' SUVs and MPVs continues to influence average prices upwards throughout Europe, as these cars are generally more expensive than their more traditional alternatives."

Meanwhile, diesel sales are steadily rising on the Irish market, though nowhere near as strongly as other European markets where rising petrol prices are driving demand.

As oil prices touched nearly €45 a barrel this week, figures for diesel sales in Ireland are standing at 17 per cent - a slight rise on last year.

The rising oil price is also having an impact on hybrid sales. The latest model of the petrol/electric Toyota Prius has recorded sales to date this year of 196, compared to 19 in 2001.

In Britain, rising oil prices are leading to an upsurge in diesel sales, with 150,000 more expected to be sold this year than in 2003. The Society of Motor Manufacturers and Traders raised its forecast of this year's diesel sales - which can be up to a third more economical than petrol equivalents - to 850,000, about a third of the total new car market. The SMMT is forecasting a further rise, to 890,000 - 36 per cent of the market - next year.