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Automobile Bavaria identifies new areas of growth

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While the domestic automotive market has yet to regain its pre-crisis vigor, Automobile Bavaria Group President Michael Schmidt relies on his team's experience and expanding services to achieve the group's development targets. Used cars and commercial vehicles provide some of the most promising prospects nowadays, and the Group is prepared to make full use of that potential.
What has changed in the Romanian business environment since you company launched operations in this market?
Both the business environment and the automotive market have seen dramatic changes In the 21 years since Automobile Bavaria was created. The changes have gone hand in hand with Romania’s economic and social evolution. In the early ‘90s, the car market was overtaxed, the legislation was outdated, there was no financing available, and bureaucracy choked import procedures. In the mid-2000s, there was an explosion in consumption, which helped us reach an import level of 3,000 new cars. However, everything changed with the onset of the financial crisis. Now the market has regained its positive trend and it is trying to return to its pre-crisis level. 

What are the main difficulties your company has been facing in its everyday operations?
Firstly, we have to deal with difficulties created by a market that has yet to recover after the 2009 crisis. Secondly, there is a low purchasing power in this country and, last but not least, we have an unclear VAT legislation on used car imports.

What elements could contribute to a future improvement in Romania’s business environment? 
Predictability is most likely at the top of the wish list for most business people. During our more than 20 years of operations in Romania, we have encountered many occasions when uncertainty was investors’ greatest enemy. The infrastructure is another key element, and its development is eagerly awaited by strategic investors.  

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