Dramatic collapse on the Hungarian car market amidst coronavirus pandemic

There was a dramatic decline on the Hungarian car market in April, with only 6,170 new passenger cars registered, 50.3% fewer than in the base period. The marked contraction of the new car market had a great deal to do with the spread of the novel coronavirus (COVID-19) and the measures and restrictions implemented to contain it, as these have clearly kept customers away from dealerships. We can be also certain that due to uncertainties caused by the pandemic, several businesses and private individuals have delayed or even scrapped new car purchases. 

We should also note that COVID-19 led to dramatic contraction in new passenger car registrations also on various European markets. In Switzerland, for instance, they last sold as few cars as in April during the oil crisis in the 1970s. In Italy, where car dealerships closed down in mid-March, the car market has practically collapsed. According to estimates, new passenger car registrations were down 98% year on year in April. 

These were the most popular brands

Toyota recorded the highest number of new passenger car registrations in Hungary in April, 759 to be exact, by which it carved out a 12.3% market share. The 'silver medal' goes to Dacia with 713 new registrations and a market shar of over 11.5%, followed by Skoda, Volkswagen and Ford.

According to Carinfo data, a total of 1,408 small utility vehicles were newly registered in April, down 33.1% year on year. Ford sold the highest number (417) new SUVs, which secured it a market share of nearly 30%. It was followed by Fiat with 226 new SUV registrations, and Toyota with 133 units.

No meaningful improvement expected in the near future

The Hungarian vehicle market's outlook is grim. The Hungarian Vehicle Importers Association (MGE) has recently amended its 2020 estimates due to the economic fallout from the coronavirus pandemic, and projects a nearly 25% contraction in new passenger car registrations for this year. 

The MGE slashed its previous forecast of 155,000 new passenger car registrations to 118,000, and its new SUV registration estimate is now 22,000 units instead of 26,000 previously. 

the mge added that even a yr/yr 50% contraction was possible in april and may in the passenger car and suv categories due to the restrictive measures and the production suspensions put in place in relation to covid-19, while the loss could possibly be offset to some extent by sales in the second quarter.

In other words, improvement is unlikely in the immediate future, and not only according to the MGE. Other industry players also project further contraction of the market. 

The coronavirus epidemic is having a chilling impact on Europe's car industry and trade

, according to a recent comment by Gábor Gablini, President of the Hungarian Association of Automobile Dealers (GÉMOSZ) . 

Cover photo by Markus Hibbeler/Bloomberg via Getty Images