Memos from Asia

What Car Brand Do You Think is the Best-Selling in Kazakhstan And Uzbekistan?

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Cars have already become the inseparable part of lives for both Kazakh and Uzbek people. Residents of the two countries may have different tastes according to culture, lifestyle and interests. Hence, car manufacturers need to produce cars which can match the needs and wants of customers as much as possible.

In this article, I have collected the top-selling automobile brands in Uzbek and Kazakh market.

Uzbekistan

You can ask any local person in Uzbekistan about the most widespread cars in the country. Trust me, you probably hear more than 9 same answers out of 10 respondents.

The best selling passenger cars manufacturer in Uzbekistan is government-owned UzAutoMotors. More than 90% of cars in Uzbekistan is produced by this company

Other car brands such as Lada and Volkswagen has considerably low market share than UzAutoMotors.

Need a little more convincing reasons before you can believe that one company can own such a huge share in the Uzbek car market:

Monopoly

UzAutoMotors is the monopoly in Uzbek Automobile industry, though there are other companies in the market. Lada entered the market recently with higher prices than UzAutoMotors, while Volkswagen started offering light commercial vehicles this year.

UzAutoMotors company produced 271,098 cars in 2019. (Xabar). This number is lower than the demand of over 34 million population, so people wait in the electronic queue until before buying the car.

The local population in Uzbekistan often complain about high car prices. At the beginning of 2020, the average salary in Uzbekistan accounted for 2,500,000 Uzbek Soums (about 244 USD in 15.08 rate).

According to the UzAutoMotors price list, the cheapest car model Chevrolet Spark costs 73,262,000 UZS (7,160 USD), which means a person with average earnings should save approximately 2.5 years without making any other expense.

Recently, the manufacturer introduced several new car models such as :

  1. Chevrolet Equinox – 349,000,000 UZS (34,109 USD)
  2. Chevrolet Traverse – 596,000,000 UZS (58,249 USD)
  3. Chevrolet Tahoe – 795,000,000 UZS (77,697 USD)

*The USD amounts are approximate and may be subject to change

Government protection techniques

Uzautomotors is wholly owned by the Uzbek government. Hence, the authorities established various techniques to protect local car manufacturer.

The company employs more than 10,000 people.

The biggest obstacle for importing cars is high tariffs and bureaucracy, which makes car importing unappealing and unsatisfactory. Additionally, calculating the tariff is a complex task because it depends on different factors such as engine size, type of the automobile and the age of the vehicle.

Kazakhstan

Kazakhstan is the biggest economy in Central Asia. Unlike Uzbekistan, its automobile industry is far more competitive.

Although the market leaders in Kazakhstan changes frequently, several companies have their place in the market.

Hyundai, Lada, Toyota, Kia and Ravon competes for being a market leader in the country.

In 2019, Russian brand Lada sold the most cars in Kazakhstan, while Hyundai and Kia took 2nd and 3rd positions respectively. (Asatana Times). The Kazakh car industry saw 359.5 billion Tenge (80 million USD) revenue in 2019.

Beginning in 2020, the list of the most popular car brands saw minor changes. Lada and Hyundai remained the top-selling brands, while Skoda went up to the 5th position after Ravon.

Uzbek manufacturer UzAutoMotors is also active in the Kazakhstan car market. In February, it signed a cooperation agreement with Kazakh car manufacturer Allurgroup to create a joint-venture manufacturing plant in Kazakhstan. (Gadimova, 2020).

Conclusion

In general, both Uzbekistan and Kazakhstan have distinct strategies to improve the Automobile Industry. Uzbekistan tries to keep existing job places by supporting UzAutoMotors, while Kazakhstan established lower tariffs to reduce car prices.

Besides, Kazakhstan has more competitive auto market than Uzbekistan. The most popular car manufacturer in Uzbekistan is government-owned UzAutoMotors, while in Kazakhstan it is Russian Lada.

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