The European Central Bank published research in its Economic Bulletin analysing euro area households’ demand for cars using a new, one-off set of questions in the ECB Consumer Expectations Survey (CES) from July 2025. The analysis finds that recent household purchases were largely concentrated in second-hand internal combustion engine (ICE) cars, while elevated economic and financial uncertainty and, for lower-income households, limited access to affordable financing are key factors weighing on demand and contributing to a slow expected recovery. The ECB notes the sector’s macro relevance, with the car sector accounting for around 10% of manufacturing value added and close to 2% of real GDP, while new passenger car registrations and production volumes in the second quarter of 2025 remained around 20% and 30% below early-2018 levels. In the CES, 47% of respondents who bought a car in the previous 30 days reported buying new and 53% buying second-hand; ICE vehicles represented 43% of new purchases and 70% of second-hand purchases. For buying second-hand rather than new, concerns about rapid depreciation of a new car were the most common reason overall (22%), while limited access to affordable financing was most important for low-income households (27% versus 4% for high-income households). Looking ahead, only 11% of respondents planned to purchase a car within the next year; among those planning a purchase, intended demand was split mainly between ICE (42%) and hybrids (41%), with 16% planning a fully electric vehicle, and 81% preferring a car originating from an EU country.
European Central Bank 2025-11-12
European Central Bank research using Consumer Expectations Survey data finds euro area car demand concentrated in second-hand ICE purchases and recovery likely to remain sluggish
The European Central Bank's Economic Bulletin shows euro area households' car demand is hindered by economic uncertainty and limited financing, especially for lower-income groups. Recent purchases favor second-hand internal combustion engine vehicles, with new car registrations and production below 2018 levels. Only 11% plan to buy a car within a year, with preferences split between ICE, hybrids, and a minority choosing fully electric vehicles.