A new bill aimed at regulating the profession of used car dealers and addressing the illegal sale of vehicles is in progress, the Ministry of Transport has announced. The issue of unregulated sales not only creates unfair competition in the market but also leads to the import of problematic vehicles, raising safety concerns.

Transport Minister Alexis Vafeades has tasked a technical team with drafting a legal framework for the sector. Once reviewed by the Ministry, the draft law will be forwarded to the Legal Service for examination before submission to Parliament for approval.

At the same time, the Pan-Cyprian Association of Car Dealers (PASEA) has appointed Achilleas Emilianides, a legal expert, to draft a regulatory framework that will formalize the profession and help combat illegal used car sales.

Following recent issues with Takata airbags, faulty brakes, and other defective components, the Transport Ministry is considering stricter inspections and upgraded technical standards for vehicle roadworthiness. “It is essential to regulate the used car sales market,” Minister Vafeades told Brief.

He added that recent experiences have highlighted the need for a strong and effective regulatory framework that will:

• Protect legitimate businesses in the sector

• Eliminate illegal sales practices

• Ensure consumer safety

Although Vafeades remains optimistic about addressing the Takata airbag recall issue, he acknowledged potential challenges in implementing stricter regulations.

Shortly after his statements, the Department of Road Transport (TOM) announced that CTC Automotive, the official Volvo representative, received notice from the manufacturer that 425 vehicles in Cyprus are subject to a recall for airbag replacement—though these airbags are not manufactured by Takata.

Vafeades emphasized the need to enhance the criteria for MOT testing centers, ensuring they can more effectively identify defective vehicles. “If we want vehicle inspections to be more reliable, the Ministry must take the initiative to train MOT technicians,” he stated.

According to Kyriakos Moustakas, Deputy General Secretary of POVEK, under which PASEA operates, the association has long sought legal support to introduce a structured regulatory framework. “The used car sales market must be regulated to ensure transparency and remove unlicensed dealers,” Moustakas told Brief.

The Ministry of Transport is also considering the creation of an official registry for used car dealers, ensuring only licensed professionals operate in the sector. The proposed law will require new entrants to obtain a professional license, granted by the Ministry based on strict criteria.

Illegal car imports are an open secret in the industry. Individuals outside the professional auto sales sector are importing cars online without meeting safety regulations and selling them illegally. “This is an unprecedented violation of the law,” PASEA members noted, arguing that these actions create unfair competition not only for used car dealers but also for official importers of new vehicles. “We comply with all tax obligations, create jobs, and provide reliable services to drivers,” industry representatives stated, stressing the need for stricter enforcement of market regulations.