Recently published research from Business Monitor International, "Kazakhstan & Uzbekistan Autos Report 2014", is now available at Fast Market Research
Boston, MA -- (SBWIRE) -- 12/23/2013 -- BMI holds an optimistic outlook on auto production and sales in Kazakhstan and Uzbekistan. Both countries boast solid macroeconomic fundamentals and both are seeing strong demand for cars from their citizens.
Turning to production first, Kazakh auto production looks set for strong growth over BMI's five-year forecast period to 2017. This reflects new production plans by three carmakers; Japan's Toyota Motor, France's PSA Peugeot Citroen and Russia's AvtoVAZ.
Toyota announced its new production plans in February 2013. At that time, the automaker stated that it plans to commence production of its Fortuna SUV in Kazakhstan from late 2014. Following investments totalling some US$35mn, local plants will begin painting, welding and assembling completely knocked-down (CKD) versions of the vehicle. Production, which will start at around 3,000 units annually and may rise in the future, will be for both the domestic and export markets.
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In March 2013, French auto manufacturer PSA Peugeot Citroen announced that it is to assemble cars in Kazakhstan in partnership with Russian company Agromash Holding. From June 2013, the site was to assemble Peugeot 301, 3008 crossover sport-utility vehicle (SUV), 508 sedan, and Partner commercial van models. Output will initially be 4,000 units, eventually increasing to 10,000. The units will be produced in France, where it will add 300 jobs, but assembled in Kazakhstan, where it will add 150 jobs.
Toyota and Peugeot's plans follow the 2012 announcement by Russian auto manufacturer AvtoVAZ that it is to establish a joint venture (JV) with Kazakhstan companies AziaAvto and SEC in Ust-Kamenogorsk. AvtoVAZ will also reportedly invest US$400mn in Kazakhstan production. Under the agreement, vehicle production of 60,000 units per year will start in 2015. There are plans to increase annual capacity to 120,000 vehicles at a later stage.
For Uzbekistan, despite the problems posed by an ongoing trade dispute with Ukraine, BMI is generally upbeat on the outlook for auto production over the forecast period. For 2013, we are targeting 9.1% growth in output, to 256,585 units, with production then set to rise by a further 34%, to over 340,000 units, by 2017. The most recent production figures for GM Uzbekistan showed output was up by 9.7% over 9M13, to 192,182 units, according to an October 2013 report by the Trend news agency. This bodes well for BMI's full-year target of 256,585 units to be met.
On the sales side, the Kazakh new car sales market saw stellar growth during 2012, with sales up by 120%, at 98,231 units, according to BMI's calculations. This was one of the strongest growth rates seen anywhere in the world over 2012 and bodes well for continued strong performance over BMI's forecast period.
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