The following is a summary of Bulgaria's market for automobile parts and equipment.

 

Total Market Size (millions of U.S. dollars):	1999	2000	2001 Est.
	78.6	80.3	88.3
Avg. Annual Growth Rate of Market 1999-2001: (Estimate)			11%
Imports, total (millions of U.S. dollars):	1999	2000	2001
	74.1	75.8	83.4
Avg. Annual Growth Rate (1999-2001) of total imports: (Estimate)			10%
Imports from the U.S. (millions of U.S. dollars):	1999	2000	2001
	3.2	4.1	5.1
Avg. Annual Growth Rate (1999-2001) of U.S. imports (Estimate)			25%

II. EVALUATION OF SECTOR -- AUTOMOTIVE PARTS AND EQUIPMENT
Ranked from 1 (low) to 5 (high)

BACKGROUND INFORMATION:

Demographics & Economic Situation

Source: Factbook.net

Bulgaria is a small country with a population of about 8.3 million, of which 6 million live in the 238 cities and towns. Most people still rely mainly on public transportation. However, over the last 5-7 years vehicles for public transport, currently numbering about 20,000 busses, trolley-buses and trams, have been decreasing in number between 10-20% every year due to the increase of privately owned cars. Now almost 50% of Bulgarian families own a car.

Bulgaria is unusual in the Southeast Europe region in that there are no age limitations for used cars imported from the countries of the European Union. With an annual per capita income of under $1,500, Bulgaria's motorists cannot afford expensive cars, and older, less expensive cars, meet their needs. The average age of the 2.2 million passenger cars in Bulgaria is about 19 years. This translates into permanently increasing demand for automotive after market products, service and garage equipment.

Currently about 15,000 used cars are imported into Bulgaria annually.

The growth rate for 2000 over 1999 of used imported cars in Bulgaria is approximately 10%. The growth rate of new car sales for the same period is approximately 9%, but only about 12,000 new cars are sold in Bulgaria each year. Industry experts expect almost the same trend for 2001.

The market for automotive parts and service equipment for 2000 is estimated at $78.6 million. While the market has been growing at a rate of only 1% from 1998 to 2000, growth is expected to increase to 10% in 2001, according to industry sources.

Used cars sold on the Bulgarian market do not undergo any preliminary service inspection and are not covered by any warranty. This translates into a large demand for immediate inventory of spare parts, consumables, instruments and service station equipment. Many Bulgarian car owners do their own service, such as oil changes, filter replacement, simple adjustments, rubber belts replacement, and brake and brake shoe lining replacement. This is done after the car owners buy the spare parts from independent auto parts stores or go directly to some of the many small independent garages or auto repair shops.

In general the automotive and especially the accident repair car business is one of the fastest growing in Bulgaria. Due to the growth in number of European cars and demanding customers the body repair and paint shops are expected to increase. This will lead to a growing need for more sophisticated service and car body repair equipment, both mechanical and electronic, paint products and application methods at an affordable price.

Best sales prospects include consumables, including oil and air filters, wiper blades, rubber blades, hoses, gaskets and rings; engine parts and brake parts, exhaust system parts including mufflers; accessories such as wheel covers, car/truck bed covers, car batteries, exterior accessory lights; auto security products such as alarms, steering wheel locks; service equipment for electronic diagnosis, monitoring, testing and analyzing, wheel balancing, tire changing, oil changing, battery chargers and quick repair kits and tools, paints and auto cosmetics.

MAJOR PROCUREMENTS ON THE HORIZON (NEXT 18-36 MONTHS):

No major government procurements are expected. However, it is expected that by the end of 2000 the largest Bulgarian oil refinery, which supplies most of Bulgaria's market, will stop production of leaded gasoline. This is expected to result in a massive demand for after-market catalytic converters to be installed in at least 20% of the cars which are older than 15 years, as well as newer cars whose owners have destroyed their catalytic converters by using less expensive leaded gasoline.

METHODS OF PROCUREMENT:

The methods of procurement for the public sector are government procurement, public tender and open tender. The methods of procurement for the private sector are open tender and direct purchase. It is difficult to sell in the local market without a local representative office. A foreign company can participate in government procurement tenders, but when it comes to the performance of the contract, the winner must be a company registered in Bulgaria under the Bulgarian commercial code. All government procurement tenders are published in the Bulgarian State Gazette. Companies interested in government procurement and/or public tenders must contact the individual Ministries directly. In cases of availability of local representative the chances for identifying such opportunities are greater.

MEANS OF FINANCING PROCUREMENTS:

For public procurements, Eximbank requires a sovereign guarantee or equivalent security. Since credit insurance from U.S. Eximbank is not available for routine trade contracts, U.S. exporters should consider requiring advance payment by bank transfer or using letters of credit in export transactions to Bulgaria. After establishing commercial relations with a company in Bulgaria, a bank guarantee, documents against payment or even open credit might be possible.

Bulgarian merchandise buyers have limited access to commercial credit from Bulgarian banks. Private service stations and garage owners can negotiate a loan from the State Saving Bank based on mortgaging of dwellings or other assets.

The Bulgarian economy is still a cash-oriented market. Wholesale and retail purchase of auto parts and service equipment is generally made only by cash upon order or cash upon receipt.

More reports from Factbook

Bulgaria
Market studies	Economic reports and analyses
Autoparts Market	Economic Trends & Outlook - 2001
Autoparts Market Summary 2001	Business Travel
Aviation Market	Internet Opportunities
Car Market - 2001	Contacts
Building Materials Market - 2001	Investment Climate - 2001
Cellphone Market	Leading Sectors- 2001
Computer Hardware Market -2001	Political Environment - 2001
E-Commerce -2001	Trade Financing - 2001
Franchising Market	Trade Regulations
Internet Market Access	Trade Statistics
Internet End User Market	FDI & Convergence Indicators - 2001
Internet Services Market
Internet Software Market
Software Market
Tourism Market -2001
Value Added Telecom Market -2001

KEY CONTACTS

U.S. Embassy U.S. Commercial Service U.S. Embassy Sofia 1, Saborna Street 1000 Sofia Republic of Bulgaria Phone: 359-2-963-2014 Fax: 359-2-980-6850 E-mail: Sofia.office.box@mail.doc.gov Internet home page: http://www.usatrade/bulgaria.gov Commercial Attache: Richard S. Kanter Commercial Specialist: Uliana Kanelli

A. Host Government

Ministry of Transport Department "Transport Policy" 9, Levski Street 1000 Sofia, Bulgaria Phone: 359-2-987-6764 Fax: 359-2-988-5094

 

Customs & Excise Ministry of Finance 102, Rakovski Street 1040 Sofia, Bulgaria Phone: 359-2-981-2498 Fax: 359-2-980-6863

B. Automotive Associations

Union of Car Importers In Bulgaria (UCIB) (Show Organizer and Import Strategy Coordinator) # 37, Veliko Tarnovo 1000 Sofia, Bulgaria Sofia 1000 Phone: 359-2-946-1250 Fax: 359-2-946-1250 Mr. Stefan Hadzhinikolov, Chairman

Union of Bulgarian Automobile Drivers 3, Pozitano square Sofia 1000, Bulgaria Phone/Fax: 359-2-86151 Mr. Georgi Yanakiev, Chairman

C. Agents and Distributors

 

AVTOMOTOR CORPORATION S.A. (CITROEN) 126, Tzar Boris III Blvr. 1612 Sofia, Bulgaria Phone: 359-2-955-9086 Fax: 359-2-55-9151 e-mail: amc@techno-link.com Managing Director: Kiril Sandov

AUTOTECHNICA S.A. (SEAT, AUDI) 47, Vassil Levski Blvd. 1000 Sofia, Bulgaria Phone: 359-2-981-5268/4228 Fax: 359-2-980-5729 e-mail : office@audi.autotechnica.bg Managing Director: Evangelis Kakuras

 

Beissbarth-Bulgaria Ltd. (Service Equipment) Drujba 2, #10, Momina Cheshma Blvd. Sofia, Bulgaria Phone/Fax: 359-2-42-6192 Fax: 359-2-971-3718

 

Bulavto (VAZ, Ferodo, Knecht, Otibelt, Sachs) #25, Vitosha Blvd. 1000 Sofia, Bulgaria Phone: 359-2-980-6222; 980-5911; 931-0462 Fax: 359-2-931-0891

 

BULTRACO S.A. (HONDA) 2-A, Samokovsko shousse Blvd. 1738 Sofia, Bulgaria Phone: 359-2-973-3334 Fax: 359-2-973-3298 e-mail : bultraco@internet-bg.net Managing Director: Kostadin Grozdanov

 

BULVARIA Ltd (OPEL) Vitosha 3 1000 Sofia, Bulgaria Phone: 359-2-980-9320 Fax: 359-2-980-5348 e-mail : bulvaria@ttm.bg Managing Director: Vladinir Penchev

 

CAR TRADE (Leyland-DAF buses and minibuses, Rover/ Land Rover, service equipment) #126 Tsar Boris III Blvd. 1618 Sofia, Bulgaria Phone: 359-2-519-125; 955-5231; 57-4735 Fax: 359-2-955-9067

 

CLYNE TRUCKS SOFIA (Clyne Trucks, Netherlands) 122-B Gornobanski Blvd. 1330 Sofia, Bulgaria Phone: 359-2-21-7119; 920-0022 Fax: 359-2-920-0022

DAEWOO BULGARIA S.A. (DAEWOO) 62, Bulgaria Blvd. 1680 Sofia, Bulgaria Phone: 359-2-965-0011;41 Fax: 359-2-958-2859;84 e-mail : dw-root@mail.bol.bg Managing Director: Chung Huan Kim

 

EURATEC Ltd (SKODA) 99, Totleben Blvd. 1606 Sofia, Bulgaria Phone: 359-2-526-095 Fax: 359-2-954-1190 e-mail: eteksrvc@exco.net Managing Director: Ivan Todorov

 

GLOBAL AUTO LTD. (service and diagnostic equipment) #26 Manastirska St. 1111 Sofia, Bulgaaria Phone/Fax: 359-2-730-170

 

IVECO CORPORATION (IVECO Fiat SPA) 36 Dragan Tsankov St. Interpred, Bl. B, Office 612 1040 Sofia, Bulgaria Phone: 359-2-7146-3158; 973-3193; 971-3350 Fax: 359-2-971-2942 Contact: Rosario Italiano

INTERBULIT LTD. (garage and service equipment from Italy) Dianabad, Bl. 31, entr. B 1000 Sofia, Bulgaria Phone: 359-2-962-4092; 689-621 Fax: 359-2-962-5065

 

LADA BULGARIA Ltd (LADA) Mladost-IV, PO Box 5 1715 Sofia, Bulgaria Phone: 359-2-974-4826 Fax: 359-2-974-4828 e-mail: Ladabg@mail.techno-link.com Managing Director: Rossen Bonev

 

MOTO PFOHE Ltd (FORD, JAGUAR, VOLVO) 444, Slivnitza Blvd. 1360 Sofia, Bulgaria Phone: 359-2-984-22222 Fax: 359-2-984-22333 e-mail: motopfohe@ford.bg Managing Director: Boris Marekov

MITSUBISHI CORP. #36 Dragan Tsankov Blvd. Office: 206 - 209 1040 Sofia, Bulgaria Phone: 359-2-971-2961; 971-2962; 971-3780 Fax: 359-2-971-3783

 

MIRKAT Ltd (SUZUKI) 22, Petrohan str. 1505 Sofia, Bulgaria Phone: 359-2-943-3833 Fax: 359-2-943-3481 e-mail: mirkat@mail.bol.bg Managing Director: Elefteri Anganakis

 

NISSAN BULGARIA LTD. 60, G.M Dimitrov Blvd., entr. A, 1Fl, apt.1 1172 Sofia, Bulgaria Phone: 359-2-962-4292; 962-4291 Fax: 359-2-962-4290 e-mail: kirkov@nissanbg.netbg.com Managing Director: Dimitar Dimitrov

 

PROMOBILE Ltd (RENAULT) 13, Iskarsko shousee Blvd. 1592 Sofia, Bulgaria Phone: 359-2-960-1436;-46 Fax:359-2-960-1426 e-mail: atanas.genov@promobile.bg Managing Director: Julian Genov

 

RATOLA MOTORS Ltd (MITSUBISHI) 116, Maria Luisa Blvd. 1221 Sofia, Bulgaria Phone: 359-2-931-1190 Fax: 359-2-931-0288 e-mail:mailto:%20ratola@mail.erix.net Managing Director: Vassil Baroff

 

SCANIA BULGARIA LTD. #25 Milin Kamak St. 1421 Sofia, Bulgaria Phone: 359-2-659-009; 660-343; 963-4171 Fax: 359-2-65-8460

 

SHELL BULGARIA AD 5 Rezbarska St. 1510 Sofia, Bulgaria Phone: 359-2-945-4651, 645-4664, 945-4923 Fax: 359-2-945-4929 Contact: Haldun Gyuvenir

 

SOFIA FRANCE AUTO Ltd (PEUGEOT) Tzarigradsko shousse Blvd. 10-th km Po Box 73 1113 Sofia, Bulgaria Phone: 359-2-960-1101 Fax: 359-2-975-3094 e-mail:mailto:%20ina@sfa.bdata.bg Managing Director: Stoyan Jelev

 

SUMMIT MOTORS BULGARIA Ltd (MAZDA, KIA) 62, Cherni vrach Blvd. 1407 Sofia, Bulgaria Phone: 359-2-962-4048 Fax: 359-2-962-4698 e-mail: smb@sumitomocorp.bg Managing Director: Stefan Hadjinikolov

TM AUTO Ltd (TOYOTA and service equipment) 55 A, Stamboliysky Blvd. 1301 Sofia, Bulgaria Phone: 359-2-981-3912, 6920 Fax: 359-2-980-1252 e-mail: tmauto@digsys.bg Managing Director: Dimitris Dalianis

 

UNITRADE-X Ltd (VOLKSWAGEN, Audi) 12, Momina cheshma Blvd. 1582, Sofia, Bulgaria Phone: 359-2-793-753 Fax: 359-2-793-742 e-mail: unitrade@ttm.bg Managing Director: Ivan Ivanov

 

VANTO TRADE AUTO LTD (IVECO) 99, Samokovsko shousse Blvd. 1138 Sofia, Bulgaria Phone: 359-2-975-3168;-69 Fax: 359-2-975-3154 e-mail: vta@techno-link.com Managing Director: Todor Nikolov

 

WILLI BETZ Gmbh. & Co KG - BALKAN STAR LTD (MERCEDES, CHRYSLER) 5, Rezbarska Street 1510 Sofia, Bulgaria Phone: 359-2-91-988 Fax: 359-2-945-4014 E-mail: amilanov@balkanstar.com Managing Director: Willi Kraus