Market Slowdow Continues in Central and Eastern European Car Market

MICHIGEN – November 26, 2009: Very little in the way of recovery is apparent across the new car markets of Central and Eastern Europe, according to the latest analysis from the world’s leading provider of automotive data and intelligence, JATO Dynamics.

These markets, without the government-supported scrappage schemes that have assisted many of their western neighbours, continue to suffer the full effects of the recession. In many, these effects are felt even more intensely, having been real centres for growth up to 2008.

The only major brand to buck the downward trend in Q3 2009 has been Fiat, while only Slovakia and Poland remain in the black when it comes to new car sales.

Regional Summary
In total, 213,086 cars were sold in CEE in Q3 2009, a 32% drop, versus the same period last year. Poland remains the largest market in the region, with sales of 70,733 marking it as one of only two markets in the region to post a rise in sales, versus Q3 2008. This quarter’s performance continues and strengthens Poland’s upward trend from the first half of the year.

However, Poland’s growth rate continued to be outperformed by Slovakia, which saw Q3 sales rise 8.1%. All other markets suffered falls, with Latvia (-73.9%) and Lithuania (-68.1%) selling less than 2,000 new cars in the quarter.

“Eastern Europe is suffering far more than Western markets,” says David Di Girolamo, Head of JATO Consult. “Of course, the worrying thing here, for Western Europe, is it reveals the ‘true’ level of demand for new cars, when the cushioning effect of scrappage and other incentives is removed.”

The biggest faller of all in Q3 was Hungary, where new car sales virtually collapsed to just 9,689 units (Q3 2008: 38,324), a 74.7% decline. Adding to the economic woes here are the effect of mid-year VAT increases (to 25%).