"The prices of new vehicles will continue to be lower in Bulgaria than prices in other European Union countries, but not for long"
What are your expectations for the 17th Sofia Motor Show?
There is no doubt that the Expo will be the biggest event for the Bulgarian motor vehicle trade for the year. Given the large number of vehicles that will make their debut at the Expo, and the fact that last year the Expo was about light and heavy commercial vehicles, I expect great interest in the event, and many visitors and record sales.
What is the Expo’s importance for business and the public in Bulgaria?
Bulgaria is one of the most dynamic and fast developing motor vehicle markets in Europe, and every year we register sustainable growth. This is a reflection of the way Bulgaria’s economy is developing and the improved state of Bulgarians’ standard of living. I am sure that the Expo will contribute to these tendencies.
What has changed after motor vehicle expos were divided? How does this help the 2007 Sofia Motor Show to be any different?
The simple fact that this will be the first Expo specialising solely in light vehicles makes it special in itself. The 2007 Sofia Motor Show is the biggest event of its kind organised in Bulgaria so far. It has an outdoor/indoor exhibition area, of more than 13 000 sq m. More than 150 companies have applied to take part in the Expo, with 35 premieres of brand new motor vehicle models and several pre-premieres of European vehicles. The total number of the novelties that will be shown is 85. We are proud that this year the first Bulgarian-made motor vehicle will be shown at the expo.
Does the Sofia Motor Show resemble the biggest European motor vehicle expos, such as those in Geneva, Paris and Frankfurt...?
Indeed, today the Motor Show in Bulgaria is a well-established event. This year it will be its 17th, and it is part of the International Organisation of the Automobile Manufacturers (OICA) calendar. Almost all of the novelties and achievements of the world motoring industry will be represented at the Expo, even though the exhibition area is in a way restricted by the size of Sofia’s Inter Expo Centre. However, to create a nice welcoming atmosphere for the visitors, we tried hard to make our organisation better. Traditionally there will be plenty of surprises and prizes for the visitors. Like any other major Expo in the world, the Sofia Expo has done its advertising campaign in good time, and the event was widely advertised. Together with the modern media centre, we expect it to be a success.
Have you seen any changes in the market in new vehicles in Bulgaria since the country joined the EU on January 1st 2007?
The major change is the slowing down of the growth, mainly because Bulgaria is flooded with second-hand vehicles. In reality, sales of second-hand vehicles in Bulgaria doubled compared to last year, because importers no longer have to pay VAT when entering Bulgaria from other EU countries. In the first five months of 2007, a total of 125 000 second-hand vehicles were registered by the authorities, while the number of new vehicles is 23 500.
What the future will bring to Bulgarian market in this regard?
If we do not follow the example of Hungary and Romania, which managed to protect their markets from this “invasion”, I do not see much optimism in the future. In terms of technology, the future tendencies are in the field of higher ecological standards and safety, which are becoming more important every year. Of course, things like design, fuel efficiency, functionality and comfort will be part of the future as well.
Are the prices of new motor vehicles in Bulgaria still lower than in other EU countries?
New motor vehicles continue to maintain lower prices in Bulgaria than other EU member countries. However, since we joined the EU, we cannot expect this to continue much longer. The tendency is for prices in Bulgaria to match those in other EU states.
What about the time period needed for a vehicle to reach a buyer in Bulgaria?
If the vehicle comes from an EU country, and we do not have to pay excise duties, this period has shortened considerably, compared to the times when we had to do a lot of paperwork at customs. Now the lorry carrying the car delivers it straight to the warehouse of the importer, which saves a day or two. Unfortunately, because of the old computer system at the Traffic Police (KAT) used to register motor vehicles in Bulgaria, and the slow organisation of work, the period for registering a vehicle has become longer.
Is it more financially efficient to buy a vehicle during the duration of the Expo rather in any other time?
Yes it is. Almost every company that will take part in the Expo will offer special offers in the form of additional equipment and price discounts. All this will stimulate buyers. Visitors will have the opportunity to see in one place everything on offer on the market on the moment, and make the best choice.
What about the foreign citizens who have companies registered in Bulgaria. Will they be able to take advantage of the tax credit if they buy a seven (or more) seater motor vehicle?
The VAT Act does not discriminate when it comes to whether the ownership of a company is owned by a Bulgarian or a foreigner. So in this sense, a company registered on Bulgarian territory and registered according to the VAT Act has the right to a tax credit. In many other EU countries, companies have the right to such a credit not only when they buy a seven-seater vehicle but for vehicles with 4+1 seats. We expect this to be applied in Bulgaria very soon.
Is the quality of after sales service in Bulgaria better today?
Among importers who have realised the quality of such service, it will be getting better and better. On the other hand, those who have not invested in building enough after sales service points and at the same time keep their sales up, will register a decrease in clients’ trust in them. As far as I know, facilities of tens and even thousands of square metres are in the process of being set up at the moment. It is expected that in the next year or two, the lack of such facilities in Bulgaria will be overcome.
