The Croatian car market recorded a historic decline in Europe in the first half of the year. Only 17,436 cars were sold, which is just 46 percent compared to 38,156 cars sold in the first half of 2019.
The main reason is the absence of vehicle purchases by rent-a-car companies, which registered every second new vehicle last year in the first half of the year. A similar, albeit smaller, decline was recorded by other tourism-oriented countries. Hrvoje Paver, Assistant Director of the Trade Sector at HGK, warned that the industry could lose up to 30 percent of its workers, and therefore expects urgent government measures.
He believes that subsidies for motor vehicle trade or a reduction in VAT on motor vehicles, similar to Germany, are necessary, and a combination of these two measures is also possible. Unfortunately, Croatia is not Germany. Because the Germans do not subsidize the car market for the sellers, but for their strong automotive industry.
Thus, with such measures, we as consumers would also be helping the (German) automotive industry. A more appropriate combination for vehicle trade would be social measures and promoting the sale of Croatian bicycles, cargo bikes, and similar human or electric-powered vehicles.
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