We don’t have enough cars to sell”

We don’t have enough cars to sell”

No relief in sight: new registrations are falling across the EU, by 21 percent in March. This means that we are now a third below pre-crisis levels. EY expects a decline of around ten percent for 2022. But what does that mean for the domestic car market? The automotive industry gathered voices from the industry and wanted to know how tense the situation in companies really is. 
 

The market economy law of supply and demand suggests that now that the supply of new cars is scarce, prices should be high. After years of complaining about the rampant discountitis in the industry, there is a gold rush atmosphere in the showroom? No, as the vehicle dealer's federal representative (BGO), Klaus Edelsbrunner, explains: "The range of vehicles is limited and the manufacturers have reduced the discounts they offer to dealers, which is why support is lower. So it cannot be said that there is a gold rush atmosphere, as there are simply not enough vehicles available." Wolfgang Sonnleitner, managing director of the car dealership of the same name, echoes a similar sentiment: "At first glance it may seem so and there is actually no pressure on the customer to make a discount. However, since the dealers' margins are manageable, the discounts saved do not outweigh the losses from smaller quantities. Most dealers - including us - need a certain volume to keep the shop running. What is the salesperson supposed to live on? Brand dealers also lose customers in the workshop after a few years. What If we can’t sell today, we can’t repair tomorrow.” 
 

Speaking of repairs: Too few new cars suggest that local drivers are having more repairs done in order to preserve the existing ones. Surprisingly, this assumption cannot be confirmed: "Many customers have extended existing leasing contracts due to the longer delivery times. At the same time, a general increase in the holding period can be observed. Despite the lower number of new registrations and the extended exchange intervals, no major changes can currently be observed in the workshop and service business," says Hermann Prax, Head of Public Relations at Porsche Holding Salzburg. BGO Edelsbrunner confirms this and Toyota Austria cannot see any increase in the service business either. Wolfgang Sonnleitner adds: "This is certainly also due to the lower mileage of the last two years due to Corona. In general, technology sales are now increasing again." 
 

Almost all contacts agree: The delivery bottleneck for new vehicles will last until mid or late 2023. Then relaxation can be expected at the earliest. Toyota Austria managing director Holger Nelsbach answers a little more optimistically: "The delivery situation is currently good and our customers are also feeling that. Availability at Toyota has not changed significantly since the beginning of the year." 
 

Hardly any new cars can be obtained suggests that customers are scrambling for good used ones. As analysis of GW prices shows, they are actually at an all-time high. The vehicle trade is also feeling this: it has become immensely difficult to get good used cars in sufficient quantities, they say. But due to the high number of leasing extensions, used car marketers are struggling to get the sought-after leasing returns (more on this on page 8). From Porsche Holding's point of view, Hermann Prax also has nice words: "The past automotive year was also a fitness cure and a return to commercial reason for the industry," he says, with regard to the fact that high discounts and short-term registrations have been eliminated and the Porsche partners have benefited from a more balanced balance of volume and earnings. How long all of this will last for smaller retailers remains to be seen.