Novatech a company that imports and sells car service equipment, expects its turnover to increase by 40% this year to reach 3 million euros.
The increase will come from the higher number of car service centres in the wake of this year''s expansion of the car market, company representatives say.
"The market has seen an increasing number of new car servicing centres, in parallel with the development of the car market, and major dealers have started imposing higher technical standards, which is also affecting the development of the service equipment segment," said Cornel Costea, sales manager with Novatech.
The company expects this year''s turnover to hit 3 million euros, after registering turnover of 8.78 million RON (2.17 million euros) and profits of 0.17 million RON (42,000 euros) last year, according to Finance Ministry data.
Costea went on to say that 30-40% of this year''s turnover comes from supplying equipment to the service centres belonging to car dealers.
For 2006, the company''s management has forecast 30% growth based on the estimated growth trend for the service equipment market and amid the introduction of new products.
"For next year, we expect 30% higher turnover following the introduction of a new product in our portfolio - dyeing cabins - but also due to the growth in the market," said Costea.
Novatech is also present at this year''s International Auto Show in Bucharest.
The products on display include a line for periodical technical inspection, priced at between 18,000 and 25,000 euros, and car body straightening equipment, priced at 22,000 euros.
The company imports and sells car and truck hoists, compressed air installations, lines for periodical technical inspection and tinsmith equipment.
Novatech has been present on the market since 1994. Its customers include Cefin Romania, Autonet Satu Mare, Texaco Romania, Atlassib, Porsche Romania, Radacini Bucharest and Taxi Cobalcescu.
Car market expansion has pushed other industries higher, too, such as the car parts industry and the post-sales services sector.
In the first eight months of the year, the automotive market rose by around 60% to reach a volume of 168,000 vehicles, 140,000 of which were cars.
Market players say the market could reach 250,000 units by the end of the year, representing growth of around 50% on 2004.
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