Imports of used cars booming after change of first registration tax

6 Noiembrie 2008

Information in English

 
The imports of second-hand cars have more than doubled after the modification of the first registration tax, while the number of aged cars, more than 10 years old, has risen 6 times, according to the data submitted on Tuesday by vice president of the Automotive Manufacturers and Importers Association (APIA) Brent Valmar.
 
In the first nine months of 2008, as many as 168,339 second-hand cars were imported against 84,789 in the same period of 2007. In the third quarter of this year imports have boomed in comparison to the first half-year or the same period last year.
In Q3 of this year, 92,996 second-hand cars were imported, thus exceeding the number recorded in the first six months of the year – 75,349 units, APIA reported.
 
More alarming is the fact that the share of cars older than 10 years has risen from 7% in the first six months to 42% in the third quarter, while the number of cars less than four years old dropped from 29% to 17%, and the cars manufactured between 4 to 10 years ago fell from 64% to 41%, importers say.
Most second-hand cars are imported from Germany – 68.6%, France – 5.16%, Italy – 4.54%, but used cars have also been imported from Hungary – 0.67%.
 
In the same period the sales of new cars have suffered a slight regression at 2.6%, that is from 228,877 units to 222,997 units.
The evolution of the automotive market was affected by the imports of second-hand cars that invaded the Romanian market this year, Prime Minister Calin Popescu-Tariceanu said.
 
“The imports of second-hand cars do not contribute to the state budget, do not create jobs and have no economic contribution. The businesses involved in the visible economic activity have nothing but to lose”, Tariceanu warned.
The PM also said Romania could do better than becoming the car cemetery of Europe, even if the western countries thought this was great as their automotive industry was interested in getting rid of the old cars.
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