Cookies utilized by Autovista24 to enhance your user experience
New-Car Market in Romania Faces Challenges in 2025
The new-car market in Romania is experiencing a significant contraction, with new car registrations dropping between 16% and over 22% in the first half of the year. Dacia remains the market leader despite a 32.4% decline in sales, followed by Toyota and Skoda.
Despite the growing charging infrastructure, the electric vehicle (EV) segment is contracting even more sharply, with EV sales down 46.1% year-on-year. This decline is partly due to subsidy cuts in 2024, though the government has reinstated a higher eco-bonus, potentially supporting a future rebound.
Chinese brands such as BYD, Geely, Lynk & Co, Leapmotor, MG, Chery, Farizon, and Maxxus have entered the Romanian market in the last two years, offering a strong lineup that includes affordable ICE models, full hybrids, PHEVs, and BEVs, and embracing advanced technology, electrification, and connectivity. However, their impact in Romania during 2025 is not yet significant, with market shares focusing primarily on European and established global brands.
The Rabla incentive program, a key eco-bonus for new cars, has suffered ongoing delays this year and is expected to be activated on 1 September 2025. Starting from 1 August 2025, the VAT rate for various products, including vehicles, will increase from 19% to 21%, further impacting consumer demand.
Registrations for mass-market brands like Dacia, Renault, Hyundai, Ford, and Toyota in Romania shrank in the first half of 2025. The light-commercial vehicle (LCV) market has also experienced a 33% drop, with only 6,696 units sold compared to 10,083 in the same period of 2024.
Industry experts predict a challenging rest of 2025 due to the increased VAT rate and the absence of the Rabla incentive program until September. The perceived quality and innovation of Chinese brands may leave no room for interpretation in the Romanian market, but it remains to be seen if they will make a notable impact in the coming months.
[1] Auto-Industrie Magazine, "Romania’s New-Car Market in 2025: A Challenging Landscape," June 2025. [2] Romanian Automobile Manufacturers' Association, "First Half of 2025: New-Car Deliveries in Romania Drop," July 2025. [3] Car and Driver Romania, "Electrification in Romania: A Slow but Gradual Process," July 2025. [4] Romanian Government, "Revised Rabla Incentive Program to Boost New-Car Sales," August 2025.
- The rising VAT rate and delayed Rabla incentive program could pose significant challenges for the finance sector, as it may deter potential buyers from purchasing new cars in Romania for the remainder of 2025.
- Despite the market contraction, the auto-finance industry should consider the growing popularity of electric vehicles in Romania, as the government has reinstated a higher eco-bonus, potentially leading to a future rebound in the EV segment.
- When it comes to traffic and transportation, the introduction of electric-vehicles from various brands, such as Chinese brands, might contribute to a more eco-friendly lifestyle in Romania's automotive industry over the coming months, but their impact remains minimal for now.
