Car market fell by 50 percent last year, APIA says

The Romanian Automotive Manufacturers and Importers Association (APIA) has dubbed last year a disaster for the Romanian car market, with falls of 50 percent. Moreover, APIA data reveals that 10 percent of the 400 dealers who sell new cars around the country declare bankruptcies and loss-incurring sales, as these companies were forced to slash prices to shift stock, said Brent Valmar, vice-president of APIA.

And the local car market could fare even worse this year if measures to support the sector are not taken, warned Ernest Popovici, APIA’s GM.

These measures, called for by industry officials, include the resumption of the car replacement program from February 15 and clunker program from February 15, and the revival of lending.

The difficulty in obtaining financing and the public’s lack of money to buy new cars are the main factors that sent the local car market tumbling back to the level last recorded in 2004.

“The pressure put on stocks

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has led many dealers to sell at a loss, but stocks have dropped (…)

We estimate that from now on cars will have reasonable prices which will allow dealers to continue

working in good condition,” said Valmar.

APIA estimates that this year the market will be around last year’s level, with sales reaching 115,000 new cars and about 15,000 commercial vehicles.

Dana Ciuraru