Hungary’s Car Market Continues To Recover As Government Eyes Conversion Of Forex Car Loans
Tamás Székely 2015.08.04.
New car registrations in Hungary rose 14.4% to 7,012 in July from the same month a year earlier, the Hungarian Vehicle Importers Association (MGE) said, citing information compiled by Datahouse. Sales of light commercial vehicles climbed 5.1% to 1,313.
MGE confirmed its earlier projection for full-year sales of 75,000 cars and 17,000 LCVs, up 15% and 6%, respectively, from 2014. Data compiled by JATO Dynamics show that Ford sold the most new vehicles in July and had 10.7% market share. Opel was market leader in terms of new passenger cars, selling 10.6% of the total. Suzuki was runner-up, followed by Skoda and Volkswagen.
Meanwhile Hungary’s government said it would discuss a proposal to assist borrowers with foreign currency-denominated car loans at a cabinet meeting at the end of August. Economy Minister Mihály Varga will present two versions of the proposal to the government, both involving the conversion of the loans into forints.
The Hungarian government announced plans to assist borrowers with FX car loans in July. Hungarians have more than 200,000 FX vehicle and personal loan contracts with a value of almost 300 billion forints (EUR 975m). Some 30,000 of these borrowers also have a mortgage, which presents risk of cross-contamination.