According to data of the Car Importers Association, sales of new passenger and light utility cars in the Czech Republic fell by 7% to 11,603 units in January 2010. Sales of passenger cars alone rose by 22% to 10,813 units thanks to purchases by companies.

Companies' interest in purchases of passenger cars was boosted by last year's change of the law which has enabled them to deduct VAT when buying a new passenger car.

Purchases by companies accounted for 62% of all cars sold in January. The dominance of company cars was reflected in shares of business categories as mid size category cars for the first time accounted for the biggest share (27.6%) of sold cars ahead of economy cars (a 26.8% share) which usually lead the ranking.

The top selling make among passenger cars was Skoda with 4,119 sold units, followed by Volkswagen with 877 units and Ford with 587 units. Renault and Peugeot ranked fourth and fifth, respectively.

Meanwhile, sales of new light utility cars dropped by 78% to 790 units. Lorry sales decreased by 41% to 289 units, the lowest number since 2004. Demand for buses stagnated at 32 sold units and sales of motorcycles were 37% lower at 474 units.

(Sourced from Czech News Agency)