Customer Purchase Power and Sales To Be Boosted by Online Methods of Payment in Uzbekistan Automotive Market
Launch of new vehicle models and tax incentives for foreign partners in joint ventures set to drive growth, finds Frost & Sullivan's Mobility team
LONDON, Feb. 28, 2017 /PRNewswire/ -- The automotive market in Uzbekistan is experiencing steady growth, low competition, stable product capabilities and rising sales volumes. This is due to the launch of new vehicle models, an increase in vehicle demand, growth of the compact car segment, and government initiatives to produce vehicles that run on natural fuel. However, intense protectionist measures and state-controlled original equipment manufacturers (OEMs) such as GM Uzbekistan, SamAuto, and MAN Auto-Uzbekistan collectively hold 94.4 percent of the total market share and 95 percent of total sales.
"The domestic automotive industry has a strategic place in the economy. The government aims to modernize the production facilities to grow manufacturing capabilities, increase localization of component production and reduce dependence on imports by providing tax incentives for foreign partners in joint ventures," said Frost & Sullivan Intelligent Mobility Research Analyst Ivan Kondratenko.
Uzbekistan Automotive Market, Forecast to 2020, part of Frost & Sullivan's Mobility: Automotive & Transportation Growth Partnership Service program, analyses and forecasts the passenger, commercial, bus and minibus segments within the Uzbekistan automotive market. The research finds that the Uzbekistan commercial vehicle market showed steady growth with 27,550 units sold in 2015 and a compound annual growth rate of 5.4 percent.
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GM Uzbekistan (under the name Chevrolet), produces the most popular vehicles in the private car segment and has a well-developed production and distribution network, selling its vehicles through official dealerships.
Other noteworthy facts include:
- Customers in Uzbekistan prefer to have practical and durable vehicles with cheap purchase and maintenance costs.
- With a 40 percent sales share by 2020, there is a growing demand for automatic transmission in new cars.
- The commercial vehicle, bus and minibus sectors show the highest sales growth.
- The segment of small passenger vehicles in classes A and B is the most popular in Uzbekistan and is projected to reach 81.7 percent of the market share by 2020 with the production of new models.
- Small and medium-size vehicles with 4x2 axle combinations will account for 94 percent of the commercial vehicle market in 2020.
"High-import tariffs and preferable economic and tax conditions for the domestic producers are expected to remain, with production localization being the most attractive prospect for potential investors," notes Kondratenko. "Online methods of car purchase and the potential introduction of credit opportunities for individuals will lead to a decrease in customer purchase waiting times. It will also bring convenient financial solutions to individual customers, increasing their purchase power and boosting sales."
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Uzbekistan Automotive Market, Forecast to 2020
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