For the first four months of the year in Bulgaria were registered 5540 new cars, recent data from the European Automobile Manufacturers Association (ACEA) showed. This is by 5.5% above the figures for the same period of 2011, but this relatively good result is due to stronger January and February. In a comparison of the sales in April last year and this year there is a decrease of 5.3% – from 1584 down to 500 cars. The situation in March was no better when there were also a decline of over 6 percent. Experts say this clearly shows that 2012 will be difficult for importers of new cars and the optimism of the early months will evaporate. Bulgaria continues to be located at the bottom in the European Union’s list of car sales as an absolute figure, ahead of only the Baltic states and Cyprus. The least new cars were registered in Latvia – 3400 for the period January to April, but the market there showed an increase of about 5% annually. The same situation was in Estonia, where the growth for the period was over 21 percent. Even in Greece, which is experiencing huge economic difficulties and where financial uncertainty reigns, they sold over 35 000 new cars. Significant is the fact that in Bulgaria’s other neighbour – Romania, sales from January to April were over 14 600 and reported annual growth rate reached 24.5 percent.
According to representatives of the importing companies, the sector has already exhausted the possibilities of shrinking profits and lower prices, but also the ones for offering extras – such as increased guarantee periods, lower interest rates on corporate leasing and insurances. This means that prices in the country will remain at their levels from the beginning of the year, and an increase in sales can be only driven by increased need and more potential buyers.
Promotional prices at most dealers of economy class cars are between 13,000 and 15 000 lev with VAT, shows a check with the offers by importers. For example, the Twingo model of Renault in the version with the 1.2 petrol engine, 75 hp is priced at 17,590 lev, while its promotional price is 13,896 lev with VAT. With increasing class of the car discounts also increase – for the Megan model, 1.6, 110 hp, of the same producer the initial price of 31,410 carries a rebate of 5600 levs. Citroen specifically offers promotional prices for all versions of the C5, and in some cases the discount reaches 8-10 thousand levs from the origonally quoted price. The importer of the Fiats even relies on good terms for its Casco insurance and a free annual technical check-up. Korean KIA have announced discounts of 7 to 17 percent. Dacia from Romania, on their turn, do not have any competition in terms of price – their models (eg Sandero) are available for 13 999 to 21 690 levs with VAT.
By the end of 2012 Bulgaria’s market for new cars will remain below expectations, experts point out. The possibility of reaching 2010’s level and when they made just over 20,000 sales of new cars, trucks and motorcycles is too small. More realistic for the moment is to reach a result of about 15,000 to 16,000 sales, and this – if the pace in the next two to three months does not slow down. Again the determining factor for the performance will be the price and discounts, with projections of a possible upsurge in the price segment of cars from 15 000 to 22 000 levs and stagnant prices for cars from 25 000 to 40 000 levs. For the highest price segment big changes are unlikely because there relatively equal number of transactions have been taking place in the last two to three years.
