Although independent sources like the Alliance and Leicester
confirm that new car prices in Britain are falling, the latest survey from the
European Commission, continues to show differences in new car prices caused
by different tax regimes across Europe.
While highlighting UK prices, the survey confirms that specifications
– generally higher here than on the continent – and the high value of the pound
have to be taken into account when analysing the cause. It also points to wide
differences in new car prices between countries within the euro-zone like Germany
and the Netherlands.
SMMT Chief Executive Christopher Macgowan said, ‘Once again
the industry has been criticised by a report which shows wide price differentials
across Europe, with the UK singled out as a case in point.
‘But the fact is that price differentials are caused by distortions
which should not exist in a truly single market. It is a simple fact that while
variables like different sales taxes across Europe remain we will continue to
see reports like this in the future.’
