High-end cars (premium) an average of between 1,500 and 3,000 euros will become more expensive as of January 1, 2021 being forced to pay registration tax for the definitive entry into force of the new WLTP approval cycle, according to the general director of DS Automobiles in Spain and Portugal, Borja Sekulits, in a meeting with the press. In addition, he warned that this rise in the rate, which will lead to exempt models having to pay it, “cannot be assumed by the brands.”
In the presentation of the new versions of the DS 7 Crossback SUV, he explained that, with the new WLTP cycle, the current emissions of new vehicles will increase by around 20%, which will make many of them go from not paying tax of registration to do it and that others jump of section. In his opinion, this on average will mean an average price growth of 5% for vehicles with combustion engines (that the industry figures between 800 and 1,200 euros), which “is not good news.” However, premium vehicles, starting from higher prices, will register a higher rate hike, he warned.
Asked how it will affect DS, he replied that like any other brand, since finally the Government has not accepted an amendment to the General State Budgets for 2021 The aim was to increase the C02 values that are taken into account in the four sections of the registration tax by 20% in order to achieve fiscal neutrality such as that decided by France and Portugal.
According to Sekulits, in December he expects the market to have an “artificial rebound” motivated by some drivers moving ahead with the purchase of their vehicle to avoid the rise of 2021, a year in which the Government has also decided to raise insurance (car insurance as well), recalled the director of DS in Spain and Portugal.
DS will close this year, despite the pandemic, with registrations close to those of 2019. Last year it sold 4,200 cars and this 2020 expected to finish with between 4,080-4,100 units, according to Sekulits. As of November data, it is the eighth brand in the premium market (which falls 28.04% in the interannual rate) in Spain, with 3,519 units, 7.3% less than a year earlier.
Another data that has been provided is, despite the pandemic, in the first quarter of 2021 they will expand the current network of DS points of sale from the current 32 to 36. The four new openings will be in the Basque Country, Catalonia, Madrid and the Canary Islands .