New Favorite Car Brand Appears on the Horizon

The number of new cars registered in Hungary fell slightly in April, and at the same time, there was a change in the favorite car brand of Hungarians.

According to Datahouse, a total of 8,549 cars were registered in Hungary in April, down six percent from April last year. And if we look at the data for April 2021, the gap is already more than 2,000 units, which is 19 percent.

According to the data,

a total of 38,091 cars have been registered in Hungary in the first four months so far this year, which is slightly more (0.8 percent) than in the first four months of 2022.

However, if we compare the figures with the same period in 2021, we still see a decrease of 10.9 percent.

The data also shows that the brand competition was won by Toyota, with 1,108 cars registered in Hungary, followed by Skoda with 956 units, and Suzuki with 818 units.

Other brands in the top 10 include Ford, KIA, Volkswagen, Mercedes, BMW, Dacia, and Hyundai. Toyota also leads the year-round total, followed by Skoda, Ford, and Volkswagen.

However, when looking at the changes in the volume of brands registered, the biggest winner this year is Tesla, meaning that it has become a new favorite among Hungarians.

Tesla has registered almost 230 percent more cars than at the end of April last year, while the official dealership in Pest is booming, and cars are also arriving from the Berlin factory.

It is worth noting that the price of a Tesla car is not exactly tailored to the average Hungarian’s wallet. Although the company closed last year with lower-than-expected sales figures and announced a price cut as a result, the price of a Tesla car is still well over 15 million forints (EUR 40,200). According to e-cars.hu’s January article, the base price of the Model 3 is 19 million forints (EUR 50,900), but if you choose the Performance model type of it, it costs 25 million forints (EUR 67,000).

The other models are only available at a higher price. The Tesla Model S, for example, arrived in Hungary this year at a starting price of HUF 48,360,900 (EUR 129,700). The Tesla Model X is also available now, with a starting price of HUF 51,771,900 (EUR 138,900). For comparison, the average monthly gross salary of a Hungarian was HUF 515,800 (EUR 1,380) last year, which means an annual average of HUF 6.1 million (EUR 16,300).

There are several possible explanations for the recent downturn in the number of registered cars and the slight plummeting of the car market. Firstly, the price of new cars has skyrocketed, and this has also increased the price of used cars.

Bertalan Halász, CEO of car seller website JóAutók.hu, told Hungarian economic portal Világgazdaság that the majority of private buyers in Hungary are likely to stay on the second-hand market, where they are trying to get a car in good condition for a few million forints – although it is getting harder to find these days. Those who want to buy a newer used car will have to dig deep into their pockets, with prices of up to five million forints (EUR 13,400) no longer uncommon.

However, it is still better value for one’s money to buy a used car, and this trend is shown by the fact that the most used cars (72,300 units) have never been bought in Hungary than in March of this year. Of course, this has also been helped by the easing of the uncertainty caused by overheads, which has led to a return of the consumer’s confidence in spending on durable goods.

At the same time, imports of used cars are also picking up again, and new car deliveries are slowly on the rise. As older vehicles are replaced, these are all generating additional turnover in the domestic used car market.

Featured photo via Facebook/Tesla