A market dependent on imports
In 2022, used light passenger vehicles imported from the European Union comprised over 67 percent of the Portuguese car market, a share which amounted to over 104,900 used vehicles. This volume was a year-over-year jump of 44.53 percent amid the global automotive semiconductor shortage, which led to depleted new and used car inventories worldwide. However, while the volume of imported used cars dropped in 2020 amid the COVID-19 pandemic, the share of imports in the total market has steadily increased since 2014, surpassing a quarter in 2015 and reaching almost half in 2021.Portugal had a positive trade balance for motor vehicles, parts, and accessories in 2021, globally exporting around 3.11 billion U.S. dollars of these goods (approximately 2.84 billion euros based on the August 8th, 2023, exchange rate) for some 2.98 billion U.S. dollars in imports (around 2.72 billion euros). However, while the Portuguese automotive industry has consistently recorded positive financial results since 2012, its used car market has grown dependent on imports from other European countries. This dependence is generated both as most cars manufactured in Portugal are exported and due to the fact the Portuguese car fleet is aging. Vehicles over ten years old amounted to around 63 percent of the Portuguese light passenger vehicle fleet, including over a quarter over 20 years old, which leads the supply of young used vehicles in Portugal to rely heavily on used car imports.
Challenges for the Portuguese online used car market
Used vehicle prices have risen since 2021, reaching an average of over 23,700 euros in June 2023. At the beginning of that month, most of the available stock for online business-to-consumer (B2C) used car platforms were diesel cars—at over 61 percent—and petrol vehicles, accounting for over a quarter of the inventory. While diesel cars amounted to the largest share of vehicles on offer, they were also the most popular. Diesel cars represented nearly 61 percent of the monthly online B2C used car sales recorded as of May 1st, 2023, and are among the fastest-selling used vehicles along with petrol automobiles. This popularity contrasts with used electric vehicles—which held the lowest shares in both stock and sales—and could create the conditions for increased supply issues on online platforms and a used car crisis.Fuel type was not the only challenge online used car sales platforms faced. European brands tended to be more popular among users of a specific online new and used car sales platform. BMW, Mercedes-Benz, and Renault were the most searched-for brands in online advertisements, while online Mercedes-Benz, BMW, and Audi adverts had the most views. While this consumer interest in European brands matches the available offer, looking at online searches and views more granularly could also point toward potential supply issues. Online users in Portugal mostly searched for and viewed online adverts for specific Mercedes-Benz models and Model Years. In contrast, the distribution of the leading models and Model Years in available online advertisements was more diverse.
