Big Trucks Win Over Romania

During the last four years, the truck market was on a constant up-ward slope, with some 15% growth per year.

"This is a far more accelerated growth when compared with those registered in the neighboring countries," said Alexandru Blanaru, director for distribution network of Iveco-made trucks. This ratio is also due, however, to the fact that Romania has a lot of catching up to do, when compared to European Union countries.

"Highways are being built, and this is why the demand for tip-up trucks is on the rise. As good, modernized roads will be built, the demand for inter-city transportation will grow too. This means in its turn that companies will then need more and more utility trucks. The development of the intercity transportation system will bring about intra-city distribution, and thus the demand for the light trucks will come up," explained Blanaru.
He thinks that the closer we get to European Integration, the more the market will open for other specialized trucks, like, for instance those for garbage collection and disposal.

The truck market is both growing and diversifying, some specialized products being sold at a higher rate than others. "For instance, 2000 and 2001 were two good years for the vehicles for international transportation," said Torbjörn Wilson, Volvo operative director for Romania. During the first five months of 2004, the Volvo number of trucks being sold grew by 60%, when compared to the similar period last year.

The trends on the domestic market had a positive impact on the competitiveness, as most truck makers are offering their products in Romania. "The competition is fierce but is constructive, both for us, and for the consumer," said Blanaru. "When Iveco opens shop in one town, then the Volvo and Mercedes people will follow. This way new, better paid jobs are being created for the people in the region, while the local tax revenues go up too," he explained.

The current trend in Romania for the truck and utility vehicles is to focus on domestic rooads, particularly because of the evolution in the construction sector, said Dan Schnick, General Manager of the British company Schmitz Cargobull Romania. "Romania stays at a crossroads regarding the market for transportation vehicles, as its western border becomes also the one of the European Union. The transportation companies have to adapt their strategy, taking into account the growing competition from abroad. The Romanian market matured, and one can state that if last year one sold trucks, now one sells full transportation solution," added Schnick.
"I see an upward trend of this sector till 2007, but the 2007 will mean a blow up in sales of trucks and utility vehicles. The risk, however, is for the transportation sector to collapse, because the infrastructure is not there to support it," said Schnick.

Romanians go for new vehicles, not for used ones. For every 2,000 new automobiles only 500 used ones are being sold. "One would think that it would come easy to sell used trucks but it is not so at all. The reason is they fall into the Euro3 class for exhaustion gases and there are not many to go around," said Schnick.