The volume of sales could grow overall on the Hungarian vehicle market in 2011 relative to 2010, but temporary contractions are possible during the year, the Association of Hungarian Vehicle Importers (MGE) said on Monday. The number of new vehicles registered in the first quarter is way behind the 2009 level and also from the number that could be interpreted as a sing of business stability for the sector.
The Association of Hungarian Vehicle Importers (MGE) expects more new vehicles to be sold this year than in 2010, but is aware that there could be bumps on the road and temporary contractions in the monthly readings. The Q1 figures indicate a positive change, but sales in January-March were still well below the 2009 Q1 numbers. The association detected stagnation in sales in annual terms in the first three months.
The Q1 print is not enough to make projections for the whole year, the MGE said, adding that the full-year estimates may be revised when sales data for H1 are available.
According to MGE estimates, in order to operate sales networks properly and maintain the quality of services, some 7,000 new passenger cars and 1,500 small utility vehicles should be registered every month, while passenger car sales were around 3,000-4,000 units a month over the past 12-18 months. The low sales volumes may lead to a further decline in the number of dealerships, which may in the end mean lower quality services for customers.
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