"New car sales in Hungary dropped by around 20% and 10% in August and September, respectively, against an expected decline of 5% and 10%. A continued contraction will be a consequence of a drop in purchasing parity rather than global money market woes, but this has already been palpable, dealers say.The declining trend in new car sales, a characteristic of the Hungarian market, continues, as demand keeps falling. A total of around 165,000-170,000 new cars will be sold in 2008 on the local market, Gábor Győző, President of the Hungarian Vehicle Importers Association (MGE), told business daily Napi Gazdaság on Tuesday. He added that this would be a decline in annual terms, but not as drastic as projected early this year (-10%).
Győző believes the credit market predicaments and uncertainties will make people think twice about taking out loans, which could make the offer of 120-month installments without down payment disappear. He hopes that new car stales will at least stagnate in 2009.
The Hungarian unit of Ford Motor Company sticks to its forecast to sell about 20,000 cars this year. It estimates the market's annual contraction to around 4-6% this year, said Zsombor Varga, Ford Hungary's PR and Communications Director.
While the signs of a downturn are already there, sales numbers do not reflected that yet. As changes in the actual sales figures appear with a two to three month delay, the first time current sales to show will be in December, Varga noted. Ford's sales in September turned out as expected, he added.
“A fall in new car sales on the Hungarian market started last year," said Sándor Vérten, Communications Director at Porsche Hungária, adding that it was a dent in purchasing parity and a decline in demand that determine such changes.
He believes lower-category car sales will be hit the hardest, while sales of premium-category cars remain stable. The company targets 39,000 sold cars (Porsche, Volkswagen, Audi, SEAT and Skoda brands) for this year.
Porsche Hungária projects 170,000 sold cars on the entire market in 2008 and a minor decline or stagnation to 160,000-170,000 in 2009.
Mazda Motor Hungary does not yet expect the decline in sales to be drastic enough to alter its targets. The company said it would stick to its objectives in the entire region, but would closely monitor market developments.
FIAT Hungary said Sergio Marchionne, CEO of the group, confirmed the company's financial targets for 2008. In Hungary, FIAT upped sales by 12% yr/yr in the January-September period.
György Megyeri, CEO of the Hungarian arm of General Motors, does not expect the conditions on the car market to improve until the general economic situation of the country fails to ameliorate."
Source: Portfolio Online Financial Journal
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15.10.2008