Summary
Bulgaria is among the few countries in Southeast Europe region which does not produce or assemble cars. With an annual per capita income of under $1,500, majority of Bulgaria's motorists cannot afford expensive cars. Bulgaria's automotive fleet for its population of about 8,3 million people is approximately 2.22 million vehicles. New car sales in 1997 amounted to 7,500 new cars. In 1998 the new car sales increased double, amounting to 12,196 while in 1999 the sales decreased to 11,948 new cars. The year 2000 new cars sales marked up a 9.3 per cent increase record, amounting to 13,069. The new cars market share is approximately 15 per cent of the total car market. The share of vans of the total new cars market is 16 per cent, whereby 3 per cent is the passenger vans' share and 13 per cent is the light truck vans share. The share of the SUV (sports utility vehicles) is 7 per cent of the total new cars market share. Bulgarians prefer small cars, with 70 per cent of all vehicles having engine displacements of 1600 - 1800 cc. Larger vehicles occupy only 27 per cent of the overall car market.

Brands' Characteristics of the New Cars Market in Bulgaria.
The ranking of the new car sales in Bulgaria in 2000 is led by the Korean company Daewoo, with a market share of 13.8 per cent, followed by the French Peugeot (10.4 per cent) and the Germany assembled Ford with 9.3 per cent market share. In descending order the ranking from number 4 to number 10 is as follows: Renault (8.7 per cent), Citroen (7.3 per cent), Skoda (6.9 per cent), Opel (6.8 per cent), Toyota (4.9 per cent), Lada (3.8 per cent) and Suzuki (3.5 per cent).

The ranking of the new car sales in Bulgaria as far as brand names are concerned is led by Daewoo Matiz, Skoda Felicia/Fabia, Renault Megane/19, Daewoo Lanos, Opel Vectra, Ford Focus, Lada Samara, Peugeot 206, Renault Clio and Citroen Berlingo.

The ranking of new jeeps sales in Bulgaria in 2000 is led by Hyundai Galloper (134 units sold) followed by Rover Discovery (Freelander and Defender together 117 units sold), Toyota Rava (land Cruiser 116 units sold), Daewoo (Korando/Musso 106 units sold), Lada (Niva 87 units sold), Mitsubishi (Pajero/Pinin 75 units sold), Jeep (Cherokee/Grand Cherokee/Wrangler 66 units sold), Suzuki Vitara (51 units sold), Mercedes G/ML (46 units sold) and Nissan (Terano/Patrol 43 units sold).

The ranking of the new vans sales in Bulgaria in 2000 is led by Opel Zafira (passenger van 108 units sold) and Ford Transit/Tourneo (light truck 470 units sold). Majority of the vans sold in 2000 are the light truck vans for corporate needs. The ranking is followed by Peugeot Boxer/Expert (352 units sold), Citroen Jumper (310 units sold), the Russian GAZ Sobol (257 units sold), Fiat Ducato (55 units sold), Daewoo Lublin Van (41 units sold), Mercedes Sprinter/Vito (40 units sold), Iveco Daily (37 units sold), Volkswagen Transporter (28 units sold) and Renault Traffic/Master (20 units sold). Among the passenger vans sold in 2000 in Bulgaria are Peugeot/Boxer (52 units sold), the Russian GAZ 3221 (42 units sold), Ford Galaxy (40 units sold), Renault Espace/Scenic (33 units sold), Kia Besta (32 units sold), Daewoo Lublin Caoch (20 units sold), Mitsubishi Sp.W/Sp.Gear (13 units sold), Hyundai H1Bu (8 units sold) and Chrysler Voyager (7 units sold).

III. 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 or in major cases direct purchase. The government procurement law provisions allow for any company to bid in government procurement tenders, but when it comes to performance of the awarded contract, the primary contractor is required to be registered in Bulgaria under the Bulgarian Commercial Code.

The government procurement tenders can be accessed through Internet on www1.government.bg/rop

One specific obstacle for companies which do not have a local representative or agent/distributor could be the short dead line for presenting the tender bids -- it is limited to 40 days from the date of the bid publication in the Bulgarian State Gazette

IV. 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.

Car dealers and distributors offer leasing schemes or bank guaranteed customer credits which usually lead to increase of the final price by 4 to 14 per cent and require 30 to 50 per cent down payment.

V. Major Automotive Trade Shows in Bulgaria

Bulgaria Auto Expo
October 25-28, 2001
Site: International Exhibition Center
Location: Sofia, Bulgaria
Contact: M. Simova or T. Filkova
Tel: 359-2-9861684
Fax: 3592-980-3857
E-mail: bul-reklama@bulgarreklama.com
Website: http://www.bulgarreklama.com/
Information: Attendance estimated at 10,000

Sofia Motor Show
June 16-25, 2001
Site: Festivalna Hall, Sofia
Organizer: Union of Car Importers in Bulgaria (UCIB)
Tel/Fax: 369-2-946-1250
Email: svab@techno-link.com
Technical
Co-organizer: Firm Expoteam
Tel: 359-2-962-1499, 962-4964, or 962-5848
Email: expoteam@bdata.bg
Size: International
Focus: Cars, Aftermarket products, Service and garage equipment

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

Host Government

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

Ministry of Economy
Department "Registration, Licensing and Control"
12, Knjaz Alexander Batenberg Street
1000 Sofia, Bulgaria
Phone: 359-2-988-2011
Fax: 359-2-800-111

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