We all follow the growth in prices and sales of housing in Bulgaria. However, surprisingly, there has been a huge rise in the purchase of new cars in the country. Does this mean that Bulgarians have got rich or rather that they are increasing their lifestyle requirements.
Statistics:
In recent years, new car sales in Bulgaria have been on a steady rise, which can be seen as an indicator of the rising standard of living in the country. For 2024, statistics show that the number of new cars purchased has increased by approximately 10% compared to the previous year. This trend is tied to several key factors that reflect the economic condition of the population and the general economic environment in the country.
One of the main drivers of increased new car sales is the economic growth that Bulgaria has experienced in recent years. According to the National Statistical Institute (NSI), the country’s gross domestic product (GDP) grew by around 3.5% in 2023. This increase has a direct impact on household incomes, allowing for greater spending and investment in durable goods such as cars.
Improved consumer confidence is also a significant contributor to rising new car sales.
The population feels more secure in its financial prospects, which is reflected in the willingness to make larger purchases. In addition, access to various financial instruments, such as leasing and car loans, makes it easier to buy new cars. Banking institutions and leasing companies offer flexible terms and competitive interest rates, which encourage consumers to opt for new cars over used ones.
One of the main drivers of the increased sales of new cars is the economic growth that Bulgaria has experienced in recent years. According to data from the National Statistical Institute (NSI), the country’s gross domestic product (GDP) grew by around 3.5% in 2023. This increase has a direct impact on household incomes, allowing for greater spending and investment in durable goods such as cars.
Improved consumer confidence is also a significant contributor to rising new car sales. The population feels more secure in its financial prospects, which is reflected in a willingness to make larger purchases. In addition, access to various financial instruments, such as leasing and car loans, makes it easier to buy new cars. Banking institutions and leasing companies offer flexible terms and competitive interest rates, which stimulate consumers to prefer new cars over used ones.
Rising living standards can also be examined through the Big Mac Index. Created by The Economist magazine, it is a popular economic indicator that compares the prices of the same product (the Big Mac hamburger) in different countries. This index is often used to assess the purchasing power of different currencies and the standard of living in different countries. In the context of Bulgaria, the 2024 Big Mac Index shows that the price of a Big Mac in the country is around BGN 5.50, which is comparable to other countries in the region. This index provides information on the relative purchasing power of Bulgarian consumers. Although the prices of some goods and services can vary considerably, the fact that Bulgarian consumers can afford to buy more and more new cars indicates a rising standard of living.
Last but not least, the growing popularity of electric and hybrid cars is also contributing to the growth in new car sales.
Bulgaria, like many other countries, stimulates the purchase of environmentally friendly vehicles through various tax incentives and subsidies. Technological advances in the car industry, including better performance and lower maintenance costs of new models, also play an important role.
New car sales in Bulgaria in 2024 are a strong indicator of rising living standards in the country. Rising incomes, increased consumer confidence, affordable financing instruments and support for clean vehicles are contributing to this positive trend.
The inclusion of the Big Mac Index as a benchmark further confirms that Bulgarian consumers have increasing purchasing power, reflecting the improved economic conditions in the country.
And if you need any questions or advice, you can contact us at TPA Bulgaria:
TPA Bulgaria:
+359 2 981 66 45/46/47
office@tpa-group.bg
ul. G.S. 128, floor 2
1000 Sofia