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Car sales in Romania plunge 35% y/y in January, on cut in lending and financial downturn

foto: iinet.net.au

Car sales on the local market lowered by 35 percent in January versus the same month of the previous year, following sharp decline of lending on the global financial crisis, said the head of Romania's statistics body (INS), Vergil Voineagu.

Constructions remained the sole segment which advanced in the first month of 2009, showing a 6 percent year-on-year increase, despite the fact it was affected by the international turmoil and the lack of financing.

Several other branches were hit by the significant drop in orders, including the metallurgy industry, Voineagu mentioned.

The car market was severely affected by the economic downturn and a weaker national currency which curbed demand. Romania's largest carmaker Dacia had to close gates in December and January for a while, as the number of orders decreased and production shrank. The company now plans to export 75 percent of its output this year, in a bid to escape the crisis. 

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