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
MCC0-18
Contact:
Jana Schöneborn
Corporate Communications – Europe
P: +49 (0)69 77033 43
E: jana.schoeneborn@frost.com
Twitter: @Frost_Sullivan or @FS_Automotive
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