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Croatian market for new vehicles is not saturated and it is growing year over year, presenting a positive outlook for the future. In 2019, a total of 73,707 new vehicles were sold in Croatia, a 4.7% growth compared to 2018. This represents 15 new vehicles per 1,000 inhabitants, well under the EU average of 30 vehicles. In 2019, Croatia counted a total of 451 registered vehicles per 1,000 inhabitants and the average vehicle age was 12 years. German Volkswagen (VW) is the leading car brand. A total of 297 road fatalities in 2019 put Croatia above the EU average and make the road security as one of the priorities for the government.
In 2020, 8,080 hybrid and 1,343 electrical vehicles were sold, compared to 5,547 hybrid and 452 electric vehicles in 2019. According to Business Monitor International, this segment is expected to grow and more than quadruple in size until 2029. Government subsidies up to 40% of the purchase cost of a new electrical vehicles are driving the market. According to July 2020 local media reports, the most recent round of $3.4 million in funding was exhausted within two minutes, with 546 applications received online for the co-financing of energy-efficient vehicles. The country’s charging infrastructure is also growing. In September 2020, state-owned electric utility company Hrvatska Elektroprivreda (HEP) installed its 200th EV charging station. Car sharing services and mobile platforms for transportation are increasingly popular in Croatia, starting the trend of the Mobility-as-a-Service.
COVID-19 pandemic has cut the new automobile demand in Croatia in 2020 for 43%. It is expected that control of the pandemic and later economic recovery will eventually boost the market. An increase in inbound tourism after the pandemic should also lead to a rise in demand for new vehicles from the hospitality and car rental sectors. Tourism is also boosting demand for smart mobility, to help better organize transportation for over 17 million foreign tourists who visited the country in 2019 (Croatia’s population is four million). EU funds are available for environmental protection and smart mobility projects in Croatia, giving additional support to cities and municipalities to implement smart solutions.
croatia
Current Market Trends and Demand
ACEA – European Automobile Manufacturers Association: http://www.acea.be/
CLEPA – European Association of Automotive Suppliers: http://clepa.eu/
European Commission – DG for Mobility & Transport: https://ec.europa.eu/transport/about-us_en
Strujni krug – Association of Electric Car Drivers in Croatia: https://www.strujnikrug.hr/
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