How the demand for automobiles has changed in Uzbekistan

How the demand for automobiles has changed in Uzbekistan

The Center for Economic Research and Reforms (CERR) regularly analyzes changes in demand in the real estate and car markets. There is a gradual increase in demand in these markets during January-April and it indicates a recovery of economic activity in Uzbekistan.

Automobile market

In April, population’s demand for automobiles shows moderate growth, having increased by 14.1% compared to March of this year. The growth in car sales was 355.9% compared to April 2020, and 19.6% compared to the same period in 2019.

Fig.1. Index of changes in the number of registered and re-registered cars in April 2021.

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In April 2020, this indicator decreased by 75.8% compared to February and by 63.1% compared to March.

During the reporting period, the number of registered and re-registered cars increased rapidly in Tashkent (28.9%), Bukhara (31.4%), Surkhandarya (18.8%), Samarkand (17.8%) regions, while a decrease was recorded in Jizzakh (6.0%), Khorezm (3.9%) regions.

In January-April 2021, 59.6 thousand new cars were registered. From these, 2.9 thousand (4.9%) are foreign cars.

The most foreign cars were sold in Tashkent (11.8% of new cars), Tashkent (5.6%), Samarkand (3.3%) and Khorezm (2.7%) regions.

Fig.2. The sales share of new domestic cars and foreign cars in January-April 2021

The coronavirus pandemic has definitely impacted car sales in 2020; while demand for autos was high, stocks were hampered by the closure of production facilities and a shortage of chips, which became a global problem.

Economies around the world continue to show clear signs of recovery from the coronavirus pandemic. For example, the new car market in Japan grew by more than 29% to 349.9 thousand units in April 2021, compared with low sales of 270.4 thousand units a year earlier. Business sentiment has improved significantly over the past two months, despite new measures put in place by the government to contain the recent surge in COVID-19 infections.

The new car market in China grew 8.6% to 2.25 million units in April 2021 from 2.07 million in the same month last year. The country's auto market has now fully recovered to pre-pandemic levels, because of deferred demand and low interest rates.

In conclusion, it should be noted that the real estate and auto markets in Uzbekistan are expecting a certain boom, determined by deferred demand. The number of transactions will continue to grow and may set local records, but prices will not rise sharply.

* A detailed analysis of the real estate and automobile markets can be provided upon request to the Center for Economic Research and Reform.

Khalilullokh Khamidov, Chief Researcher, CERR

tel: (78) 150-02-02


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