Romania’s market has been flooded with used cars after 2008, says new report

Newsroom 14/04/2016 | 10:34

During 2008-2014, the total number of vehicles in circulation in Romania has increased by 21 percent, reaching a total of 4.9 million cars, according to a new report by professional services firm PwC.

However, most of the growth was generated by the used cars segment. At the moment, three quarters of the vehicles sold in Romania are second-hand.

„We took notice that during the last 6 years, since the first registration tax formula was set in accordance with Community rules, the national auto fleet has aged considerably, thus, if we continue at the current rate, the average age of the Romanian car fleet will increase to 14 years by 2020, thus leading to an increase in greenhouse gas emissions and putting in peril the road safety,” said Daniel Anghel, tax partner at PwC Romania and one of the authors of the analysis.

The firm further noted that the annual renewal rate of the auto fleet is 1.4 percent locally, compared to the European level 5.1 percent. This takes into account the share of new cars registered in the total auto fleet.

Bogdan Belciu, advisory services partner at PwC Romania, who also worked on this report, said that Romania rolled out initiatives to support the sale of new cars such as the Rabla program, but its economic impact has been insufficient in reversing the tendency in the market.

„Harmonizing the yearly car tax system with that of the registration tax will encourage the acquisition of newer, more efficient cars, which will drive down the average age of the national car fleet to 10 years by 2025, thus helping us achieve the environmental objectives agreed on an European level”, said Belciu.

Ovidiu Posirca   

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