No less than 135,000 new cars were sold in Romania last year, with their value exceeding one billion euros, twice the level logged three years ago. The "secret" recipe behind this successful evolution is, in fact, rather obvious: millions of euros invested in advertising. However, there is also another, less obvious "sales device": 100 million euros invested (or about to be) in developing the dealership networks, chiefly showrooms. A concept that did not even exist four or five years ago.
Whether it is about local carmakers, importers or even dealers, every single player from the Romanian market has at least one ample investment up and running.
"The investment programme of car importers, producers and dealers is a reply to market signals: increasing sales figures, more complex cars, the need to provide higher quality services to customers and, last but not least, the standards imposed by the carmakers," says Brent Valmar, general manager of the largest importer on the Romanian market - Porsche Romania.
The company has recently finalised a 15 million-euro investment in a centre dedicated to the Volkswagen and Audi brands, comprised of a multifunctional office building for the importer, a training centre, showroom for the Porsche brand and for the commercial Volkswagen vehicles.
The investment was necessary at a time when, according to market analysts, it is no longer enough to have one car in stock to sell it on the Romanian market, but an entire package of post-sale services is needed (such as service during the guarantee and post-guarantee period, but also prompt supply of spare parts).
"It certainly looks like the Romanian car market is turning to professionalism, in fact consolidating the past years' evolution towards professionalism," Valmar adds. According to the Porsche Romania general manager, a Skoda and Seat centre will be shortly completed, which will push the company's investments up to 20 million euros.
The local producers, which have been losing ground against imports in the past years, have also realised that they need to fight fire with fire: showrooms and high-quality services.
"When Renault bought the main stake in Dacia, in September 1999, we conducted a market survey and decided to develop the network on three levels. In the 15 large Romanian cities, we went for triple-brand dealers (Renault, Dacia and Nissan are all brands of the Renault group, i.e.). Then there were the exclusive Dacia dealers in the cities of average importance to us, and the Dacia service points, which had to be based within a 10-12 minute distance from any location in Romania," says Jacques Abot, Dacia's commercial manager.
According to Abot, investments in components generally revolve around 2-2.5 million euros for a triple-brand investment, 1-2 million euros for a single brand investment and 300,000 euros for a Dacia service point.
"Investments, which have not been made directly by us, but by the respective dealers, are in excess of 45 million euros and we still have about one third of our goals left to meet by mid-2005, when we expect this process to end," Abot added.
ionut.bonoiu@zf.ro
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