Growth of car registrations varies across CEE

On the radar

• In Hungary, unemployment rate increased marginally to 4.4% in August. Current account was in surplus in 2Q (EUR 1391 million).
• Real gross wage increased by 6.2% y/y in July in Serbia.
• Today, producer prices will be released in Slovakia at 9 AM CET.

Economic developments

As the European Automobile Manufacturers’ Association (ACEA) reports, by August 2025 year-to-date, new EU car registrations edged down by 0.1% compared to the same period last year, despite marking a second consecutive month of positive growth. In the region, the car registrations declined in Romania (-9.6% y/y) and in Slovakia (-1.3% y/y). The most dynamic growth of new car registrations took place in Slovenia (8.1% y/y) and in Croatia and Hungary (7.0% y/y growth in both countries). Looking at the car registrations by the type of fuel, in most of the CEE countries car registrations of battery electric or hybrid electric cars increased quite visibly in 2025. According to ACEA, hybrid-electric car market remained the most popular power type among buyers at the European level. Similar trend can be observed in the CEE region. Further, the battery-electric car market share held at 15.8%, still below the pace needed at this stage of the transition. In the region, share of battery-electric cars is even lower (6% on average in CEE7, the highest in Slovenia at 10%).

Market movements

President Donald Trump announced a fresh round of tariffs, including a 100% duty on branded or patented pharmaceuticals starting October 1, unless a company is building a manufacturing plant in America. Such tariffs will be particularly harmful for Slovenia (high share of pharmaceutical in the exports to the US) and to a less extent for Hungary. The CEE currencies kept depreciating against the euro on Thursday. EURCZK is 24.34, EURHUF increased to 392 and EURPLN touches 4.27. In Poland, central banker Dabrowski said Poland is ready to cut interest rates further but at very cautious pace. On the bond market, Romania and Czechia held auctions on government papers and demand was solid.

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