Sales of new cars in Bulgaria in 2011 will reach about 22,000, judging by the Traffic Police’s data on registrations made up until November. The statistics of the Association of Automobile Manufacturers and their authorized representatives in the country says previous year locally were sold just over 18,000 new cars. In other words, the downward trend in sales seem to have been reversed, but still one has to bear in mind the weak starting point of 2010. Let us recall however that in the not that distant 2008 sales of new cars were around 50,000 a year, and then sector representatives estimated the potential of local market at 80,000 to 100,000 deals per year. Only that the crisis has left its mark on the segment and the real numbers are different.
Holiday season brought some new elements in the business with new cars. Traditional importers who have been on the market since the fall of the Berlin Wall today for the first time are worried about competition from Chinese assemblers in the country and their models produced in the factory near Lovech. These are still not yet available for mass sales, but it will happen in a few months. And as it is well known, the most successful among buyers in this country are the less expensive models such as Dacia and Skoda, and it is very likely that customers will easily accept the Chinese brands.
Definitely we can call 2011 a year of changes on the Bulgarian car market. There is no player without a new invention on how to lure new customers in addition to the well-known tricks. What was introduced were sales at discount prices for a fixed period – usually a week or month – and a certain volume of cars. For them the discount is from 12% to 25%, especially if the production company is to shortly launch a new model. Gifts that accompany car deals are also the most diverse – from winter tires to modern toys such as iPad. More and more people are won over by the campaign of the type Give us you old car and buy a new one and the price for used cars comes to up to BGN2,500 whether the automobile is in motion or not. The warranty period also goes up and some brands are now available with 7 years free servicing from the importer, while the 5-year warranty is now regarded as a standard offer. Moreover, most of the importers continue to invest in new sales and service network, thus gaining customers from new areas. For example, in the last five months only 6 new commercial and servicing facilities have been opened in the country.
Leases with appreciation of 4-5% have also been something quite common. Depending on the model and the period of the lease, a monthly payment for a new car now varies from BGN150 to BGN800. Some importers ensure that with a 20-percent advance payment and a lease period of 60 months, the overall appreciation will not exceed 30%.
Re-exports of new cars is another novelty. There are various data on how many new cars are re-exported abroad, and the average figure for the year is about 7,000 pieces. The reason for this step is related to the price – with all the favorable discounts and leasing schemes buying a car in Bulgaria is cheaper than, say, in Germany and Austria. Therefore, people who have contacts in other European countries buy here and resell abroad at a profit.
Projections for 2012 are that the sales levels will stabilize for cars priced between BGN25,000-28,000, the growth is more likely to take place in the segment of new proposals in the lower price segment – the cars between BGN18-20,000.
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Sales of new cars in 2011, accumulated
January 1,464
March 4,638
April 5,352
July 12,277
August 14,086
November 19,200
December (estimate) 21,600
Note: Data were provided by the Association of Automobile Manufacturers and their authorized representatives for January to August and by the Traffic Police for November.
