Sales of new cars this year are higher than last year, but the automotive industry in Bulgaria has not yet reached the sales levels of 2008. This was said in an interview with BTA by the Chairman of the Management Board (MB) of the Association of Automobile Manufacturers and their Authorized Representatives in Bulgaria (APP), Alexander Kostadinov. He commented on the development of the car market in the country in recent years and the challenges it faces.
Increase in new car sales
In 2024, there will be a significant increase in the sales of new cars in Bulgaria, Alexander Kostadinov reported. According to him, the market in our country continues to develop at a positive pace, and the increase for this year compared to the previous one is obvious. However, the auto industry has not yet reached the levels of pre-crisis 2008, when sales were higher. According to Kostadinov, this is a sure sign that something needs to change.
The chairman of the APP Board added that despite the positive trends, there are many areas that need to be improved in order to achieve sustainable growth in the automotive market. According to him, one of the main problems is the lack of a clear strategy for mobility in the country, which hinders the modernization of the car fleet.
He pointed out that over 70 percent of cars in the country are over 27 years old, which is the highest percentage in Europe. This situation has serious negative consequences for both ecology and road safety. Old cars are the main cause of air pollution in cities, and Bulgaria is among the countries with the highest levels of air pollution in Europe. In addition, the high age of cars leads to more frequent road accidents, and the country is in the leading position in Europe in terms of fatal accidents. This is a direct result of the low safety standards and technologies used in old cars, added Alexander Kostadinov.
According to the chairman of the Board of Directors of APP, one of the main reasons for this state of affairs is the lack of a national strategy for car mobility and the low standards for car registration. He gave as an example that cars can be registered in Bulgaria regardless of age, technical condition or levels of harmful emissions, which leads to the accumulation of old and inefficient vehicles in our country.
Although the standard of living plays a role in choosing a car, it is not the only factor, Kostadinov believes. Compared to neighboring countries, where the standard of living is even lower than in Bulgaria, the fleet is significantly newer. This shows that there are other factors that influence consumer purchasing power and decisions.
Bulgarian consumers still prefer smaller and more economical models, such as sedans and hatchbacks, which stand out among the most sought-after cars. This trend differs from the Western European market, where SUVs dominate sales. However, Bulgaria is also seeing a growing interest in smaller SUV models and crossovers that offer more comfort and flexibility to consumers.
Premium cars also occupy a significant share of the market in our country. It is interesting that even in a country with more limited financial opportunities, luxury models of well-known brands are actively sought and purchased. This indicates the presence of a significant group of affluent consumers who can afford the latest and most expensive cars on the market. “The middle class is not so distinct. There are two much more distinct segments – the very rich, who buy the most expensive and newest cars, and another part that is focused on more modest cars,” stated Kostadinov.
The Chairman of the Board of Directors of APP added that “Skoda” is the best-selling car brand for this year, which is probably due to their more budget models. “The mass Bulgarian consumer is much more sensitive to price,” commented Alexander Kostadinov.
The Chairman of the Board of Directors of APP is convinced that the future of the automotive industry is connected to electrification. He notes that there has been a significant increase in demand for hybrid and electric cars in recent years. Although diesel models are still popular, their share is gradually decreasing, while hybrid cars with mild or full hybridization are becoming more desirable.
Mild hybridization, which includes a starter-generator to assist the engine, is proving particularly popular as the car comes at a lower price and saves fuel. At the same time, full hybrids and plug-in hybrids are also attracting the attention of customers, as they offer greater autonomy and better energy efficiency, explained Kostadinov.