In its accelerated sector inquiry, the Hungarian Competition Authority (GVH) has found that the number of single-bid procurements in the vehicle procurement market decreased between 2021 and 2023. In the draft report released for public consultation, GVH experts have also formulated recommendations for further reducing the number of single-bid public procurements in the vehicle procurement sector and enhancing market competition. All this is in line with the Hungarian Government's commitments to the European Commission.

I. Results of the accelerated sector inquiry

The GVH found that the number of single-bid public procurements continuously decreased in the relevant period between 2021 and 2023. It was also revealed that during the examined period, temporary factors occurred in the affected market – such as disruptions in vehicle manufacturing and supply chains following the coronavirus pandemic – which, according to information from both sides of the market (contracting authorities and bidders), may have caused a decrease in the number of bids in certain procurements, potentially leading to single-bid tender wins. 

However, the inquiry also pointed out that there is still significant untapped potential in the market. Many vehicle dealers and importers – primarily due to their business strategies focusing on the private sector – do not actively participate in public procurement procedures. Their involvement could further increase competition and reduce the proportion of single-bid procurements.

II. GVH’s recommendations

The GVH formulated the following recommendations for contracting parties to further reduce the number of single-bid public procurements and increase willingness to participate in such procedures:

1. During vehicle public procurements, delivery conditions should allow bidders to offer delivery at the dealer's premises.
2. Conduct separate procedures for passenger vehicles and commercial vehicles, or allow for partial bids.
3. By continuously monitoring the technical condition of their vehicle fleets, contracting parties shall consciously plan ahead and schedule vehicle procurements according to current market conditions, with particular attention to appropriate delivery deadlines and procurement quantities.
4. Use of appropriate methods to assess and limit penalty provisions to the lowest level necessary for procurement security.

III. Summary

The practical implementation of the recommendations can contribute to increasing the efficiency of the public procurement market and to an even more responsible use of public funds. The release of the draft report for public consultation is an important step in allowing professional organisations and affected market players to express their views and suggestions. The consultation deadline is June 6, 2025, after which the GVH will publish the final report and a summary of the comments on its website.

Since accelerated sector inquiries have led to actions against market players in the past, monitoring the outcome of these procedures will be essential. This is especially important considering the authority's primary objective of maintaining consumer welfare through significant interventions in market practices (if needed).

If you need more information or further guidance in this area, please contact Gabor Kutai and Kinga Kálmán.

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