Valmar: New car tax will cut market growth in half

Brent Valmar, chairman of the Association of Automotive Manufacturers and Importers and general manager of Porsche Romania, the largest car importer on the Romanian market, has revised the growth estimates for the local car market in 2008 to 5%, against the initial 10%, following the modification of the first registration tax, which could increase significantly for new vehicles, while decrease for older ones. “If the registration tax is modified, the car market will see a 5% increase in 2008 on last year. This increase will come primarily amid economic growth. As the level of tax increases for new cars, sales will undoubtedly diminish,” said Brent Valmar. In 2007, vehicle sales went up by over 20%, significantly higher than original estimate of 7%. “It wasn’t by chance that we forecast a 7% rise. We expected heated talks over the first registration tax. This tax, which is primarily a measure used for environmental protection, is part of a very carefully thought out and well structured plan, which has resulted in more new cars being sold, but has by no means caused a decline in imported second hand vehicles (…),” said Valmar.