New vehicle market growth, but customers are buying them directly

2025-10-12 14:02:00, Aktualitet CNA

Although the new vehicle market remains extremely low in the country, sales of cars with zero mileage are increasing year after year.

But, the year 2024 showed an orientation towards direct purchases, bypassing concessionaires.

This has caused some of them to see a decline in income in 2024.

According to data from the DPSHTRR, total vehicle registrations increased significantly. In 2024, 99.4 thousand vehicles were registered for the first time, or 27% more than the previous year. Of these, 83 thousand were cars, an increase of 26% from 2023.

The market continues to be dominated by older vehicles. Of the 83,000 imported vehicles, only 12% were 0-4 years old. Nearly 80% of vehicles registered for the first time in 2024 were over 9 years old.

Of the total number of registered vehicles, "Volkswagen" ranks first, with 24.2%, followed by "Mercedes Benz" with 17.5% and "Audi" with 12.8%.

Interest in new vehicles grows

The trend of purchasing zero-mileage vehicles has been growing rapidly in recent years. In 2024, 13,873 new vehicles were registered for the first time, an increase of 44% compared to the previous year.

The share of new vehicles registered for the first time reached 13.9% of the total, up from 12.3% the previous year. The data is published in the database of the General Directorate of Road Transport Services.

The majority of vehicles enter directly from imports, but dealerships or authorized dealers are also improving their market share. In 2024, 24.4% of total vehicles were registered through dealerships, an increase from 21.75% the previous year.

In total, 24.3 thousand vehicles were registered through concessionaires in 2024, with an increase of 43% on an annual basis. Even among concessionaires, used vehicles occupy the main share, with 85% of the total.

Buyers of new vehicles mostly prefer to purchase them directly through imports and do not go through dealerships. Out of 13.9 thousand new vehicles, only 27% went through dealerships.

The market has also been boosted by tourism, which has increased demand for new vehicles from rental and taxi companies. The latter have recently expanded significantly, investing in electric fleets.

"Mektrin Motor" achieved revenues of 4.3 billion lek, with an increase of 13.6% on an annual basis, rising to first place.

According to the activity report, the main impact on the performance of the activity was: Decrease in revenue from the sale of spare parts; increase in revenue from the sale of vehicles; decrease in revenue from services; increase in expenses for salaries, depreciation, other operational and financial interests.

Vehicle sales have brought in 89% of revenue, the rest has come from spare parts and repairs and maintenance.

The company emphasizes in the report that it has faced rising prices for sales fulfillment services.

This has led to difficulties in managing costs and making sales to the customer.

"Porsche Albania" reported revenues of 4.1 billion lek in 2024. According to detailed data in the balance sheet, 92% of revenues come from the sale of new vehicles.

Both new and used car sales revenues were declining in 2024.

About 90% of traffic is generated by passenger vehicles and the rest by commercial vehicles.

Gentian Bushati, general manager of the company, claims that "from two brands in 2005, today the company represents five Volkswagen Group brands, offering a complete and diversified portfolio for the local market.

In 2013, Porsche Leasing joined the Albanian market, making Porsche Albania the only distributor with the "One Stop Shop" philosophy for customers.

These steps have consolidated the company's role in the market and created a stable foundation for further development."

"Tyres Group Albania" is a rapidly growing company, reporting revenues of 4.1 billion lek in 2024, with an expansion of 62%.

According to the activity report, the company operates in the field of wholesale and retail trade of tires, of all types, for all types of vehicles and has a service center for the repair and maintenance of tires for all types of vehicles.

The company also has the objective of exercising private activity in the field of "Duty Free Shop" business, through the import and trade of goods traded in this network.

"Kadiu" has increased its revenues by 7.2%, to 3.3 billion lek. According to the activity report, "good management work has been done this year in increasing the number of clients, taking into account the competition this sector faces."

During 2024, the company 'Kadiu' JSC has continued to increase sales, leading to an increase in the number of employees to 342, compared to 313 last year.

"Auto-Pasion" had a 9% increase in activity, with revenues of 3.1 billion lek. The company claims in its annual report that "during 2024 we have an increase of approximately 10% in the number of customers, compared to 2023."

"Albanian Motor Company" reported revenues of 3 billion lek, with a contraction of 25% on an annual basis.

According to the activity report, “Albanian Motor Company” is the official and exclusive representative of the “Ford” brand. As of January 2020, the company is the official representative of “Hyundai” cars.

Since January 2022, it has been the official representative of "MG" cars, and in 2023 it took over the sales representation of "Cher" cars.

“Autostar Albania” reported revenues of 2.9 billion lekë, down 7.4% year-on-year. According to the balance sheet, about 64% of revenues came from the sale of new vehicles and the rest from services, spare parts and leasing.

“Auto Master” reported revenues of 2.1 billion lek, with a 20% expansion in 2024, after a 40% increase the previous year. The positive performance was mainly driven by the development of the short-term car rental market, influenced by the good performance of the tourism sector./ Monitor