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New Car Sales Grew 6.7% YOY in the Czech Republic in 2007
Feb 15, 2008

The sale of passenger cars and LUVs is growing in the Czech Republic as the economy of the country is growing and car manufacturers are coming up with new models.

The Czech Car Importers Association released data showing that the number of new car registration in the country increased by 6.9% YOY in 2007. The figure rose from 123,987 vehicles in 2006 to 132,542 vehicles in 2007, as reported by
HEMSCOTT. 

T
he market growth of both passenger cars and Lifestyle Utility Vehicles (LUV) sales increased from 4.2% in 2006 to 12.6% in 2007. However, the rapid growth in the car market has raised concerns regarding inflation and tightening of monetary policies by the Czech Central Bank.

The economy of the Czech Republic is progressively growing, as a result, personal disposable income of families are also inflating to double in terms of local currency. Consequently, the sales of passenger cars have gone substantially up. Easier availability of credit and aggressive marketing by the car selling companies has also accelerated the car sales in the country.

During 2007, each car manufacturer launched its new models of cars, which contributed to increase in car sales because consumers had a variety of options to choose from.  Additionally, many auto manufacturers have cut down prices of their cars, which prompted consumers to buy new cars.

Industry experts said that car manufacturers are quite satisfied with the current growth of the industry. They also said that carmakers should aim to increase the sale in the months to come so that the target projected by the Auto Association of the Czech Republic for coming years could be achieved.

A recent report, Passenger Car Market – A Global Review (2006), by
RNCOS said that the automobile market in the Czech Republic is growing and it is expected that the trend will continue in years to come. New car models have boosted the passenger car sales and it will continue to attract people. Earlier, people were dependent on lease system and took personal loan from bank to buy vehicles. But now easier access to automotive financing has given people an alternative option of traditional systems. The flexibility in financing system is good because more than half of car sales in the country are financed by lease.

Related Market Research Reports:
Czech Republic Automobile Sector
China Automobile Industry Forecast (2006-2010)
Indian Automobile Sector - A Booming Market