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| * Analysis of a survey of dealers based on the results of 2019 in the automotive market of Kazakhstan |
| At the end of 12 months of 2019 Association of Kazakhstan Auto Business (AKAB) conducted a traditional survey among official dealers to assess business representatives’ vision of the current market situation and its prospects for the next year. As of the survey date, senior executives from companies that account for more than half of the official sales of new cars took part in the survey. â € ‹â €‹ â € ‹â €‹ â € ‹â €‹ â € ‹What factors (on a scale of 1-5 points) had the greatest influence on the current dynamics of the new car sales market in 2019? |
| Were sales in 2019 higher/lower than the targets set at the beginning of the year? |
| Based on the results of the survey, 30% believe that sales in 2019 were at the level of the planned indicators set by the responding companies at the beginning of the year, versus 35,7% who gave such an answer at the end of 2018. However, in the past year, 45% believe that sales were lower than planned (at the end of 2018, 28,6% of respondents thought so). The remaining 25% turned out to be higher than planned (versus 35,7% at the end of 2018). |
Have changes in exchange rates affected car prices in tenge?
85% of respondents noted a change in prices for new cars during the period in 2019. However, if at the end of 2018 prices increased by an average of 11%, then at the end of 2019 - by only 6,3%. At the same time, respondents indicate that the main reason for price changes is the link to the dollar and euro exchange rates. This year, companies are not noticing price reductions.
What management improvements were implemented in your company in 2019?
In the past year, most of the companies surveyed increased the efficiency of employees and also optimized personnel.
What are your expectations for sales of new cars on the official market in 2020?
â € ‹â €‹ â € ‹â €‹ â € ‹â €‹ â € ‹According to the forecasts of the majority of respondents, sales of new cars on the official market in 2020 are projected to be higher than the level of 2019. However, this year companies are less optimistic than last year - only 65% of respondents compared to 78,6% in the previous year.
The Association of Kazakhstan Automotive Business, while maintaining GDP growth, also predicts the level of sales in 2020 year higher than the sales level of 2019 by 13-19%, or within 85-90 thousand units new passenger and commercial vehicles, of which more than 60 thousand will be made in Kazakhstan.
Auto retail in the country continues to gain momentum, and the share of locally produced cars will continue to increase in 2020. This year, production of over ten new car models will begin in Kazakhstan. In addition, in the short term it is planned to increase exports to 10 thousand.
Probable reasons for the increase/decrease in the number of new cars sold on the official market?
According to the survey results, the most common reasons respondents indicate are changes in purchasing activity (22,9%) and changes in economic conditions in the country (18,8%). In addition, increased prices for new cars and fees (according to 14,6%) continue to influence the market.
Secondary factors that influenced sales of new cars, according to respondents, are factors such as changes in credit conditions (8,3%), as well as the entry into force of new laws (4,2%), registration of cars from the EAEU (4,2%) and dominance of the secondary market (4,2%).
Respondents least noted the impact of the Trade-in program on the number of cars sold, competition and the stability of the political situation in the country.
Let us recall that according to Association of Kazakhstan Auto Business (AKAB), in 2019 official dealers sold 75 172 new passenger and commercial vehicles totaling 717,6 billion tenge, which in total is 23% more (31% in monetary terms) than in 2018. Over the twelve months of 2019, 50 vehicles of all types were produced in Kazakhstan, which is 447% more than in January-December 55,8. The total result in monetary terms exceeds the same result of last year by 2018% (74,6 million tenge). Demand for domestically produced cars increased from 359% in 532 to 49% in 2018. In December last year, the market share of domestically produced cars crossed the 60% mark for the first time, reaching a new historical sales maximum. The share of initial registration against the background of the total number of registrations in January-December 2019 increased from 64% to 2019%. For the first time, 7,1 units were registered in Kazakhstan. vehicles, 7,3 more vehicles than in 94. In total, 491 vehicles passed through special service centers in the country (a record for the last five years).