New car registrations in Greece plunged 73 pct in the period from 2004 to 2016, recording the biggest decline in Europe, hit by a dramatic fall in the country’s GDP and an unstable tax framework for the purchase of new cars, a survey by Deloitte said on Tuesday.
The survey, based among others on data released by Economist Intelligence Unit (EIU), said that new car registration levels in Greece in 2016 were lower compared with most other European countries, with Greece ranking 15th in the list on passenger car ownership in comparison with average annual per capita income.
The survey said new passenger car companies were currently in a restructuring phase, restructuring debt accumulated during the prolonged period of sales decline, while exclusive importers and dealers at focusing on the commerce of parts with the aim to boost their profit margin.
Deloitte said a gradual recovery of the market was expected to begin this year and to regain part of losses suffered in the 12-year period (2004-2016) by 2021. This positive estimate is based, among others, to the fact that the majority of passenger cars were currently of older technology, while car leasing companies were expected to continue raising their fleet following an expected increase in tourism.
The survey said Greek consumers were focusing on “value for money” car brands and mostly with diesel engines. Greek consumers are purchasing smaller cars, with lower average fuel consumption and cheaper circulation fees.