Future is after cheap cars

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Demand for inexpensive foreign cars will remain stable in Kazakhstan for several years

Kazakh car dealers and automakers may have to restructure their pricing policy. This forecast was made today by the chairman of the board of JSC "Group of Companies “Allure” (Allur Group), the President of the Kazakhstani Association of car business Andrei Lavrentev at the Kazakhstan International Automotive Forum.

The forum was held within the framework of the specialized exhibition of spare parts, automotive components and equipment for the maintenance of vehicles, which was opened today in Astana.

He noted that the import of "gray" machines n has increased significantly in Kazakhsta. "Although Kazakhstan's GDP showed growth, we all know as professionals that the car market follows GDP, but there is an increase of "gray" imports due to devaluation of the Russian ruble and the disparity of tenge", - said Lavrentev.

He recalled that "at the end of last year Kazakhstan decided to retain the tenge exchange rate".

"It had a major impact in 2014. Only within 4 months more than 4 billion dollars have been spent in foreign currency for the purchase of cars in Russia. It was a huge blow for both importers and producers ", - said A. Lavrentev.

The situation was saved by the "decisive of the Government thanks to which was introduced the program of concessional lending for the purchase of cars, assembled in Kazakhstan", which, as it was stated by the head of "Allure" has "increased the volume of production in the country". The situation has changed by the introduction of the ban by the Government on import of cars that do not meet “Euro-4” standard.

"The amount of second-hand vehicles fell to 3%", - said Lavrentev.

According to the head of the Association of the Kazakhstani car business, the situation on the automotive market has led to changes in the sales volumes of cars in the country.

"But in general, due to the program of concessional lending, disparity of tenge in August, which was brought back to normal, because of the stop of second-hand cars in Kazakhstan, 18% is the results of sale of vehicles in Kazakhstan. They dropped to 5% from the market point of view. Not so much, though, in general, a big fall, but if to take the whole market, it is not so much",- said Lavrentev.

At the same time the segment of inexpensive cars has increased in Kazakhstan. "That is the sale of vehicles, the price of which is less than 10 000, 5000, 15 000 USD, increased three times", - informed Lavrentev.

"According to experts, up to 2020 the inexpensive segment of up to 15 000 USD will be the biggest trend and will have a growth tendency. And the situation is unlikely to change", - said the head of "Allure".

Zhanar Serdalina