The average price of a used car in the Czech Republic has risen by more than 40 per cent in five years. Demand is nevertheless continuing to grow. In a TV Nova report, NEWTON University economist Jan Boubín explains how expanding Chinese competition and the rising price of European cars are reshaping the market.
Five years ago, the average used car in the Czech Republic cost approximately CZK 230,000. Today, the figure is around CZK 325,000. Used car prices have risen by five per cent over the past year alone, yet imports have increased by ten per cent.
According to NEWTON University economist Jan Boubín, the growing strength of Chinese manufacturers is also influencing developments in Europe’s automotive industry. Their expansion is increasing pressure on European carmakers and changing pricing conditions across the sector.
New cars now start at approximately CZK 500,000, with many models costing close to CZK 1 million. Czech consumers are therefore increasingly turning to the used car market. Although second hand vehicles are becoming more expensive as well, they remain the more affordable option for many households.
The report also highlights wider changes in consumer preferences. Demand is growing for SUVs, petrol engines, automatic transmissions and more advanced equipment. Sales of used electric vehicles are rising particularly quickly.
Watch the TV Nova report featuring commentary from Jan Boubín.
