Sales of new cars in Switzerland are declining – why?

Sales of new cars in Switzerland will record a noticeable decline in 2025. According to current statistics, the number of newly registered vehicles in the first two months of 2025 compared to the same period last year 6.49% sunk [1]. Already in 2024 there was a decrease of around 5% compared to 2023 [2] – a clear sign that the Swiss car market is undergoing structural change.

But what are the reasons behind this decline? And what consequences does it have for consumers, dealers and the automotive industry as a whole?

📈 1. Sales of new cars in Switzerland under pressure: price increase as the main factor

One of the most important reasons for the decline in new car sales is the constant increase in the price of new vehicles. The combination of supply chain problems, increased raw material costs and new technological requirements (e.g. CO₂ requirements, safety features) is driving prices up.

While the average price of a new car in Switzerland 2020 still at around 39,000 CHF lay, he lies 2025 already at over 46,000 CHF - one Increase of almost 20%. For many households, buying a new car is simply no longer affordable.

Other factors influencing the price:

• More assistance systems & electronics

• Hybrid and electric technologies

• More expensive replacement parts and repair costs

📉 2. Economic uncertainty is slowing new car sales

High inflation and rising living costs are putting a strain on the household budgets of many Swiss people. Due to economic uncertainty, many consumers are hesitant to make major expenditures such as purchasing a new car. Instead, more and more Swiss people are deciding to use cheaper used cars.

Buying used vehicles is seen as an attractive alternative as these vehicles offer better value for money and involve fewer financial obligations. This development is contributing significantly to the decline in new car sales in Switzerland.

🚘 3. The Swiss keep their cars longer

Instead of buying a new vehicle, more and more Swiss are deciding to keep their current car for longer. The average vehicle age is from 8.6 years per year 2018 on 9.8 years in the year 2025 increased [3]. This trend can be explained by several factors:

• Good quality of modern vehicles: Today's cars are more robust and durable, which means that many people use their vehicles for longer.

• Lower loss of value: The depreciation of a vehicle decreases after a few years, which increases the incentive to drive the vehicle for longer.

• Cost saving: Keeping a vehicle saves money on insurance and taxes, which many see as a financial benefit.

⚡ 4. Electromobility is changing the market – but also creating hurdles

Electric cars are on the rise, but the transition brings challenges. Sales of new cars in Switzerland are increasingly shifting towards e-mobility, but not everyone is ready to make the switch.

Main problems when buying an electric car:

• Higher entry price compared to combustion engines

• Charging infrastructure not yet widespread

• Uncertainties regarding range, battery wear and resale value

Although the market for electric cars is growing, many potential buyers are still waiting - which has a direct impact on sales of new vehicles.

📊 5. Leasing as an alternative to buying a new car

With falling sales figures and changing customer needs, leasing is becoming more popular in Switzerland. It offers numerous advantages:

• Lower monthly costs: Compared to purchasing, the rates are lower.

• Flexibility: Regular vehicle changes without sales effort.

• Maintenance included: Many leasing offers include service and maintenance options.

• Transparent costs: Fixed terms and clear monthly rates.

Online leasing platforms and digital configurators make the process even more convenient and transparent. For retailers, leasing offers an opportunity to retain customers and increase sales.

📉 6. The trend towards used cars: An alternative to buying a new car in Switzerland

In Switzerland, more and more buyers are choosing used cars instead of new ones. This trend has several reasons:

• Price advantage: Used cars are significantly cheaper than new vehicles, making them particularly attractive to many buyers, especially during times of economic uncertainty.

• Low loss of value: New cars lose a significant amount of their value after the first drive, while used cars lose value more slowly.

• Availability: The used car market is well positioned and offers a large selection of vehicles of all makes and models.