Report: Car dealership industry on a slow rise

Automotive

The car manufacturing industry is becoming stronger in Hungary, while car dealer businesses are becoming less successful, business, marketing and credit information company Bisnode Magyarország Kft., announced in a press release today.

According to the report, there are approximately 12,000 car dealerships in Hungary, and authorities launch some 500 liquidation proceedings against them annually. The report noted that bankruptcy in the car dealership sector is 1.11% higher than the average among all other companies in Hungary.

Data from JATO Dynamics revealed that the number of cars sold increased by 2%, while the number of small commercial vehicles sold decreased by 11% in May of this year, as compared to data from the same period last year. The majority of new cars put in service (75) were company cars.

As reported by Bisnode, during the financial crisis, 42,0000 cars were sold, while that number increased dramatically to 492,0000 in 2014 and is expected to grow to approximately 530,0000 in the first quarter of 2015. 

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