German cars are losing ground because of competition from used cars and cheaper brands

German brands in the domestic automotive industry have lost 3% of the market since the start of this year amid the dwindling budgets of clients, who have shifted either to used German brands directly brought from abroad, or to new cars manufactured by French, Italian or Korean companies, which are known for their lower sale prices.

On the Romanian market, German brands or brands owned by German carmakers, such as Skoda or Seat, accounted for around 25% of the market in the first eight months of this year, according to statistical data from the Association of Automotive Manufacturers and Importers (APIA). Taking into account Ford, which, though an American brand, has its European unit headquarters in Cologne, Germany, their share would climb to 30%.

In the first eight months of this year, the best-selling German brand domestically was Volkswagen, with 7,631 units and a 7.4% market share, being the second best-selling import brand and the third after Dacia. Ford and Skoda rank fourth and fifth in import brands' ranking, with 6,562 units and 5,929, respectively, eight months into the year.

In the first eight months, the best-selling import brand, according to APIA, was Hyundai with 8,080 units, while Renault now ranks third after VW, with 7,326 units.

"Looking at the ranking of the top selling new cars domestically, German brands have generally not always filled the first positions. Renault, for instance, has been in the lead for many years because price is an important factor for people buying new cars, and German brands are generally more expensive," said Marius Carp, a car market analyst.

German brands' market share has dropped this year, by almost 3%, while the French stayed at the same level of around 12%. On the other hand, Dacia has posted a strong market share increase, despite the brand's domestic sales falling by 46% in the first eight months.

German brands' dominance is much more visible on the premium and luxury segments of the domestic car market, where Audi, BMW and Mercedes-Benz account for three quarters of total sales.

On the other hand, German brands' influence is felt not on the new car market, where they account for 30%, but on the used car one. Of the 152,000 used cars imported in the first eight months of this year, over 80% were imported from Germany, according to car market players.