Car Market Under Pressure in Greece

Sales of new cars in Greece continued to decline in February, following a drop in January. According to preliminary data from ELSTAT and processed by the Association of Car Importers and Representatives, 9,818 new passenger cars were sold in February compared to 11,451 in the same month last year (-14.3%). Additionally, there were 755 new light and heavy trucks sold (-17.2% from last year) and 71 new buses (+208.7%). In the first two months of the year, 20,477 new passenger cars (-15.4%), 1,526 new trucks (-26.9%), and 204 buses (+191.4%) were sold. The reasons for this downward trend, after several years of growth, are numerous and mainly relate to the overall increase in the cost of living. Car companies have initiated a series of promotional offers with significant price reductions, especially on electric models, to boost public interest. We will await the results of March and April for a clearer picture. Regarding vehicle types, SUVs of all sizes now hold an impressive 64.7% share, up from 55% last year. Compact superminis (B) account for 56.5% (down from 59.1% last year), small-medium (C) cars for 29.1% (up from 25%), city cars (A) for 6.7% (down from 7.9%), and medium-sized (D) cars for 5.7% (down from 6.2%). All other categories are virtually non-existent, below 0.6%. Concerning fuel types, hybrids lead with 49.4% (up from 37.3% as all manufacturers now use hybrid technology in gasoline engines), pure gasoline vehicles hold 33.1% (down from 39.9%), and diesel vehicles have dropped significantly to 3.4% from 11.9% due to reduced production in favor of hybrids. Plug-in hybrids show an increase at 6.7% (from 5.5%), as do fully electric vehicles at 6.1% (from 4.3%), thanks to ongoing government subsidies. Dual-fuel gasoline/LPG vehicles increased slightly to 1.3% from 1.1%, while dual-fuel gasoline/natural gas vehicles remain at 0% as such models are no longer available. Overall, Europe also experiences declining sales but at a smaller rate compared to Greece.