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Car sale crash

Though it had seemed that things couldn't get any worse for domestic sales, the situation has now reached a crisis point. In November 2004, 37 percent fewer cars were sold than at the same time in 2003, and the future looks bleak. Despite numerous campaigns, and producers' and dealers' best efforts, the results could be even worse next year.

So what has caused the stall in sales for car dealers? Experts blame the massive, uncontrolled import of used cars, as well as taxation rules. The VAT bill from May 1 limited the tax write-off for companies purchasing cars, and the resulting growth of new car prices has added to the industry's woes.

Hopes now hang on Deputy Minister of Finance Jarosław Neneman's proposal to revise the bill, on which the Sejm began discussions last week.

Figures from Samar, domestic car sales analysts, show that among the bestsellers on the ailing market are Fiat, Skoda, Toyota, Renault and Opel. Fiat holds the largest market share, with 16.5 percent. Citroen sales slumped badly last year, dipping to a low of 10,517. However, commercial vehicle sales are doing well, if not great, at the moment. Over the last 11 months, 32,725 delivery vans were sold, an increase of 24.5 percent on last year.

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