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Car demand in the euro area through the lens of the ECB Consumer Expectations Survey

Author

Listed:
  • De Santis, Roberto A.
  • Gareis, Johannes
  • Molestina Vivar, Luis

Abstract

Evidence from the ECB Consumer Expectations Survey (CES) – based on a one-off set of questions introduced in the July 2025 wave – suggests that the majority of car purchases in July 2025 were of combustion engine vehicles, followed by hybrid and fully electric cars. Most purchases were of second-hand cars, reflecting concerns about the value of new cars depreciating quickly, particularly among high-income households, as well as limited access to affordable financing options, especially among low-income households. Most respondents in the July 2025 CES wave had no plans to buy a car within the next year, with economic and financial uncertainty and a preference for alternative modes of transportation playing a role, particularly for low-income households. While demand for hybrid cars is expected to increase, interest in fully electric vehicles remains limited. Elevated economic and financial uncertainty suggests that the recovery in car demand will remain gradual and uneven, with the adoption of electric vehicles continuing at a slow pace. JEL Classification: D12, L62

Suggested Citation

  • De Santis, Roberto A. & Gareis, Johannes & Molestina Vivar, Luis, 2025. "Car demand in the euro area through the lens of the ECB Consumer Expectations Survey," Economic Bulletin Boxes, European Central Bank, vol. 7.
    • Handle: RePEc:ecb:ecbbox:2025:0007:3
    Note: 185689
    as

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    File URL: https://www.ecb.europa.eu//press/economic-bulletin/focus/2025/html/ecb.ebbox202507_03~b7d94c1ec7.en.html
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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