AutoWorld Astana 2009

Starting with 2006, the annual motor car market expansion by 40-50% is observed. Analytical reviews state that in 2008 the authorised dealers’ sales turnover will increase by 35% coming up to 45,000 motor cars. Since most of the motor cars sold on the Kazakhstan car market are used cars, further sales growth will be transferred to its more high-priced segments. In 2008, the market situation will change due to revised used cars customs duties.

In 2007, Kazakhstan with its sales volumes of 547,000 new and used cars ousted Ukraine from the second place in the CIS motor car market. In 2007, the number of motor cars per capita was 170.

In 2007, the share of new foreign-made cars sold by the authorised dealers for 431,000 imported motors cars was 32,000; 16,000 cars were delivered by private entrepreneurs, 21,000 – by the authorised dealers of Russian automobile manufactures, and 362,000 by the companies specialised in used car sales.

The potential of Kazakhstan’s tire market is 6,000,000 pieces including 4,500,000 for motor cars and 1,500,000 for trucks. Used tires make up 15-30% of the total amount of imported tires and this fact is considered to be peculiar to the domestic market since Kazakhstan now is the only CIS state with used tires import. The tire market participants estimate its annual increase as 15-20%; tire sales volume in Kazakhstan ranks third in the CIS and it means that the prospects for its growth are rather optimistic.

The average bank auto loan per motor car was US$ 14,200 with an average repayment period of 9.6 years. In 2007, 86% of all bank loans were new auto loans; however, the banks started granting loans for purchasing used motor cars, too.

There are a few factors affecting the motor car market in Kazakhstan including annual earnings gains and the middle class growth, i.e. 25% of the total population of Kazakhstan. Middle class in Kazakhstan comprises people who consume 50-80% of value of all goods and services sold in Kazakhstan.

The breakdown of the middle class by the income level gives us two groups – the lower income group with US$ 6,000 to 10,000 annual incomes per individual (70% of the middle class) and the upper income group with US$ 10,000 to 18,000 annual incomes per individual (30%). According to official statistics, the salaries increased almost twofold. In 2007, gross domestic product per capita increased to US$ 6,800 as compared with US$ 1,660 in 2002.

In January 2007, import of right-hand drive cars was prohibited in Kazakhstan while the use of prior imported cars remains unrestricted.