The New Car Market in Bulgaria: Trends, Challenges, and the Future

03.03.2026 | Analysis

The new car market in Bulgaria shows a positive trend with increasing sales, despite existing challenges such as the lack of incentives for electric vehicles and administrative burdens. Alexander Kostadinov, chairman of the Association of Automotive Manufacturers, discusses the current state and prospects of the sector.

Снимка от WorldGarage, Wikimedia Commons, под лиценз CC BY-SA 4.0

New cars are becoming more affordable and sales in Bulgaria are increasing, points out Alexander Kostadinov, Chairman of the Management Board of the Association of Automobile Manufacturers. He notes that consumers are getting more value for their money.

Main highlights:

Data from ACEA

According to data from the European Automobile Manufacturers Association (ACEA), new car registrations in the EU decreased by 3.9% year-on-year in January 2026. Bulgaria is also seeing a decline, with 3,218 cars registered in January compared to 3,995 a year earlier.

Electric vehicles and challenges

Kostadinov notes that electric vehicles have seen some increase in sales, but the percentages remain low due to the lack of incentives from the state. He emphasizes the huge difference compared to European countries, where there are subsidies and other incentives for purchasing electrified cars.

The Electric Mobility Act

Kostadinov also comments on the Electric Mobility Act, which has been in the works since 2021, noting that its current wording is unlikely to lead to significant changes.

Ministry of Finance and fiscal risk

The Ministry of Finance defines new cars as goods with high fiscal risk, which increases the administrative burden and delays deliveries. Kostadinov emphasizes that new cars actually have zero fiscal risk.

Influence of tariffs

Kostadinov does not expect a short-term or medium-term impact from the uncertainty around tariffs from the US on the Bulgarian market.