Romanian Car Mkt May Shrink 30% This Year – Peugeot Importer

Ghita said the shrinking purchasing power and the Government’s austerity measures are the main forces working against the car market. In addition, the substantial import of second-hand cars leads to a decrease in the sale of new cars, he said.

„[The clunkers program] saved the Romanian car market from disaster,” said Ghita, pointing out that the program was responsible for around 80% of sales. „If the Government continues to finance [the program], next year we will see sales recovering. This is because most companies restructured their activity this year, so in 2011 they will be able to make clear business decisions. Many firms will need to renew their fleet,” said Ghita.

The importer estimated Peugeot’s market share will reach 2.7%-3% by the end of the year, from 2.4% at the moment. „Given the economic crisis plaguing the auto sector, the target share was agreed upon with the producer and our medium- and long-term objective is to have small and sustainable growth,” said Ghita, adding that the firm will kick off a series of campaigns in September.

At the moment, Peugeot has 21 dealers in Romania, operating through 36 showrooms.