New car sales on the Romanian market declined by 11.7 percent in 2008 compared to the previous year, down to 324,080 units, according to data by the Automotive Manufacturers and Importers Association (APIA). In December alone, sales dropped 9.8 percent compared to November and to half year-on-year. The demand for cars fell 14.1 percent compared to 2008, while demand for commercial vehicles rose 2 percent. While exports increased 27.4 percent, to 156,098 units, imports shrunk by 2 percent, to 48,920 vehicles. Local production rose 1.5 percent. However, sales of domestic cars declined by as much as 26.1 percent, while imported car sales dropped only 7.7 percent.
“The decline in sales is due to the change in the car tax in July 2008, the financial crisis which had a strong impact on the auto industry, and the delayed launch of the Rabla [old car] trade-in program in June,” according to APIA President, Ernest Popovici. The car tax, later turned into the environment tax, was developed for the first registration of a car in Romania. The tax was calculated based on the vehicle’s year of manufacture, engine capacity, and pollution level. The tax was lowered following a dispute with the EC. Through the Rabla program, the state compensates with a certain amount those who are willing to give up their old cars to buy a new one. The local car market could amount to a mere 150,000 units sold in 2009, which could lead to 100,000 layoffs, or half of those working in the field.
