Car sales zoom forward in the year’s first half
The new cars market posted a rebound of 4.5 percent annually in the first half of the year after two years of decline, according to a report by business research company ICAP. It adds that the already strong competition among car importers shows signs it is increasing further due to the decline of the market in 2006 and changes to the sale and distribution of vehicles with the new European Union regulation. The local market showed steady growth in the 1998-2000 period with a yearly rise of 26.1 percent. From 2001 to 2003, the market shrank at an annual rate of 4 percent, but in 2004 it posted a 13.6 percent rise year-on-year. This was mainly attributed to the preparation for and the hosting of the Olympic Games that year. The next year saw a decline of 6.6 percent and a further one of 0.4 percent came in 2006. Acquiring a car has always been one of the high priorities of Greek consumers, as this commodity not only covers practical needs but is also a means for showing off, adds the ICAP report. It notes that price is the most important factor in choosing a car, along with reliability, technical features and the image of each brand. Within this context, car companies in Greece have embarked on a race of offers in order to attract more consumers. This strengthening of competition following the end of exclusive car importing and repair works in consumers’ favor. Authorized networks place emphasis on the improvement of the services offered, both in sales and in support, along with the continued training of the staff, new installations and equipment. Such shifts in company policy require significant investment for them to adjust to the new situation with the end of exclusive imports and repairs. The new framework allows independent car repair shops to have access to the know-how and the equipment of car brands, which increases competition further and limits profit margins for companies, again to the benefit of consumers. The report suggests that there are 45 companies operating in the sector, but they greatly differ in their finances and sales network size. Certain companies in the industry represent more than one car brand from abroad, some of which belong to the same group.
