Car market, Estonia, Transport

According to the car dealers, the rapidly decreasing numbers of sold cars means that this could put smaller players out of business and make them attractive takeover targets.

Among others, there is a new dealer for Peugeot after Auto Forte Baltic, belonging to Hillar Teder, took over the dealership rights from Kommest Auto, whose owner Toomas Ruutmann became insolvent.

A few weeks ago Amserv Auto, one of Estonia's largest car dealers that sells Toyota and Lexus models, announced that it had taken over Korea Auto that represents Hyundai in Estonia.

In November alone, the sale of new cars in Estonia was 53% lower than it was a year ago. In 11 months, Estonians have bought 20% less vehicles than in 2007.

Even the most optimistic car dealers say that new growth could come only in 2010.

"It will be the year when we will reach rock bottom and start growing, but business will return to normal a year later," said Jaanus Simson, CEO of Inchcape Motors Estonia, adding that sales of Mazda were down 10% in a year, and sales of Land Rover had declined 54%.

On a positive note, thanks to a new model, sales of Jaguar went up 33% this year.

Simson added that private individuals and companies were still interested in buying new cars or replacing older ones, but leasing companies have become notably tougher and reject most applications.

"The next year will bring declining sales," admitted Rivo Saarna, the Marketing Manager of Reval Auto that sells Audis. The company that has been reporting increasing sales for several years, remains optimistic about its sales prospects in 2008, but expects the sales to plummet by a third in 2009.