Government supports local car industry

Apr 23. Caspionet

Government supports local car industryParticipants of the car market in Kazakhstan have big plans for this year. It is expected that the State will take on some of the costs of the consumer to purchase cars of domestic production. Experts noted that together with the increasing demand for new cars, the state will provide additional support for a real impetus in the development of the automobile industry.

The demand for new cars in Kazakhstan is increasing. Last year, the country sold more than 40,000 cars of all brands, including over 35% of Japanese car makers. According to market participants, it has become possible due to the growth of retail lending.

Andrei Lavrentyev, General Director, Allur Auto Group of Companies, says:

“Talking about the credit market, I can say that the market for retail lending grew in 2011. 23% of sold cars were of the Mitsubishi brand. And this growth is continuing. We have a programme with several banks where the customer can select the speed, size, rate, and length of the loan at a rate of 3, 5 or 7 years.”

The President has repeatedly stressed the need for the support of domestic producers. It is topical in an increased competition within the Customs Union and the Common Economic Space. According to local players, the support for Kazakhstan’s car industry is quite opportune.

Andrei Lavrentyev, General Director, Allur Auto Group of Companies, says:

“This means that in real terms, about 7% of the loan rate will be compensated by the state to those customers who buy cars produced in Kazakhstan. In our turn, we are in negotiations with several Japanese companies that are interested in the start of production in Kazakhstan in connection with the merger of the Customs Union of Kazakhstan. This work will continue”.

These and other factors allow local companies to do positive forecasts for the near future.

Andrei Lavrentyev, General Director, Allur Auto Group of Companies, says:

“This situation is confirmed by the presence of these automobile brands in Kazakhstan. I would also like to note the positive trends that are associated with the growth of the Japanese manufacturers market in Kazakhstan. We expect that in 2012, segment of Japanese sales on the territory of Kazakhstan will drop and equal to 35%. The total market will grow to 75,000 vehicles in 2012.”

In connection with the unification of customs duties on imported cars in the Customs Union, tariffs on imported cars increased a lot. As a result, in 2012 it is planned that the growth in sales of new cars produced within the customs union will be 50,000 units, and in 2015, this figure will exceed 100,000.,cntnt01,detail,