Augsburg International, an importer and distributor of car parts and accessories, projects 1.8 million-euro income for this year, up 35 percent year-on-year.
"Profit margin shrank in the first half of this year against the similar period of last year, a drop we'd anticipated. An important factor is the increase in certain costs, including salary raises, and why not, the fiercer competition on the market," stated Gina Iordache, Augsburg International general manager and a minority stakeholder in the firm.
The company's turnover advanced by 33% in the first half and is set to get to some 36 million euros by the end of the year, 35% above the level reached last year, according to company estimates. "Turnover growth forecast for this year is due to the rising number of car service centres, as well as to their growing potential amid the development of the car market," said Iordache.
The importer invested in logistics this year, by expanding the warehousing space of Bucharest and of other cities. The second warehouse in Bucharest was opened by the company within its logistic centre currently totalling an area of around 4,000 square metres.
"It is our plan to open new regional warehouses in other cities, as well, including Timisoara, after the finalisation of the regional warehouse in Cluj in August," added Gina Iordache.
Augsburg Romania entered the Romanian market in 1996. Its parent company is Germany's Connex firm. The first concept Augsburg brought to Romania was the car parts and accessories showroom. Starting 2003, the company has been developing the concept of automotive supermarket and fast service in the same location, totalling an area of over 1,500 square metres. The importer now owns seven automotive centres in Bucharest and other major cities of the country.
"We will further promote the concept of supermarket and fast service by opening another two car centres in Bucharest," Iordache also said. The range of car parts Augsburg International sells includes more than 8 million items. Its main customers are car service centres and car parts traders.
Car parts sales have years witnessed rapid growth over recent amid the fast development of the Romanian car market, a trend that will continue during the following years. Market players anticipate the number of imported cars per year is going to go up in the wake of EU integration.
Majority stakeholders in Augsburg International are German citizens Constantinoiu Marius and Ludwig Eberhard Siegfried.
Major players on the domestic car parts market include companies such as Autonet Import, Tess Connex Iasi or Rombat.
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