Car sales growth slow down in May due to various tax scenarios
Greece’s tourism-driven growth in car sales dropped a gear last month, due to the economic uncertainty in the country, while Czech carmaker Skoda decided to terminate its 35-year cooperation with Greek importer-representative Viamar, one of the local leaders in car sales.
The rise in the number of new vehicles sold continued in May, but at a slower pace than in April, partly because of unrest in the market resulting from the scenarios being floated regarding changes in car taxation and partly due to the proposals regarding value-added tax rates.
According to data issued by the Association of Motor Vehicle Importers-Representatives (SEAA), 9,070 new cars were registered last month, up 21.6 percent compared with May 2014. SEAA commented that this rise is attributed to the increase in sales of cars destined for rental.
In the first five months of the year, a total of 34,142 new passenger vehicles were registered in Greece, up 15.7 percent from the same period last year. In May alone, 13,000 cars (new and used ones imported from abroad) hit the Greek roads for the first time, which constitutes an increase of 27.9 percent from May 2014, against an increase of 48.7 percent in May last year from the same month in 2013.
There was a far greater increase in the number of sales of secondhand imported cars last month, amounting to 87.2 percent year-on-year.
In a blow to the local market, Viamar announced that end-May 2017 will witness the conclusion of the partnership between Skoda and the Greek importer. The latter expressed disappointment with the Czech carmaker’s decision, stating that in the 35-year partnership, Viamar had secured Skoda one of the highest market shares in a Western European country that was also four times as high as in other Mediterranean countries.
However, senior sector professionals commented that relations between the Czech and Greek sides had been souring for some time now. It remains to be seen whether Skoda will create a local subsidiary or link up with another importer (there already are several suitors), and what Viamar will decide to do when it loses its main trade asset.
