Greece Autos Report Q1 2008

BMI has raised its full-year sales estimate for the Greek new car market in 2007 on the back of a solid increase in passenger car sales. During the period January-November 2007 passenger car sales rose by 5.6% year-on-year (y-o-y) to 269,354 units. Competition remains tough, with market leaders Toyota, Opel and Volkswagen (VW) all enjoying a firm increase in sales during the period.

According to data from the Greek Association of Motor Vehicle Importers Representatives, AMVIR, the small and medium car segments continued to be the biggest in H207, accounting for almost 70% of the market. During the period January-November 2007 new passenger car sales rose by 5.6% y-o-y to 269,354 units. Toyota maintained its lead on the market, despite a mounting challenge from its closest rival Opel. According to industry data, Toyota's sales climbed by 9.1% y-o-y to 26,939 units. The carmaker's RAV4 model continues to top the SUV rankings, with sales for the year to November totalling 3,603 units. Toyota's Yaris model ranked as the second-most popular compact vehicle, with sales of 8,027 units.

Opel sold 22,587 units during the year to November, up by a massive 30.3% y-o-y. The carmaker has enjoyed a positive run on the highly competitive Greek market in 2007 after clawing its way to second position at the start of 2007. Opel's Corsa vehicle, for example, has risen from sixth place in the small car segment to become the top-seller. During the period January-November, Opel sold 9,414 units of the model. Volkswagen (VW) completed the top three, with sales of 21,318 units, up by 5.7% y-o-y. VW's market share currently stands at 7.9% and is owing to the popularity of models such as the Polo, Golf, Transporter and Passat. Other carmakers in the top 10 enjoying significant increases were Suzuki, whose sales rose by 17.7% y-o-y to 14,282 units and Fiat, up by 15.5% to 11,333 units.

In BMI's view, the upturn in sales may be attributed to an improvement in real wages and strong credit growth in the private sector, with annual household lending rising by more than 20.0%. Our revised forecast for 2007 stands at 288,350 units bearing in mind that sales may fall off in the final month of the year.