Turkmenistan vehicles market falls despite being one of the few countries in the world with 0 reported COVID-19 cases. Indeed, Full Year 2020 sales have been 600, down 89.6% compared to 2019. The top 3 brands keep gaining market share, now reaching a cumulative 63%.
Economic Environment
After a probable contraction in Q2 as the fallout from the pandemic took its toll, the economy seemingly recovered somewhat but remained broadly downbeat in Q3, as the restrictions imposed in July likely hurt domestic activity.
However, momentum should have been supported by recovering Chinese demand and higher prices for oil and gas. Going into Q4, the ongoing global rise in Covid-19 cases poses a downside risk to external demand and energy prices. In other news, parliament approved the 2021 budget in October, 70% of which is reportedly set aside for social spending.
Moreover, the plan pencils in a 10% rise in wages, state benefits, pensions, and student allowances, and envisions 6.2% GDP growth for 2021—well above our 4.8% forecast.
Market Trend
The Turkmenistan vehicle market has been decimated in 2020, despite being one of the few countries in the world to report 0 COVID-19 cases. Several experts believe the virus is spreading unreported.
Four years ago the import of black cars in the country and now all black and dark-colored vehicles were banned from the country’s capital Ashgabat, with the culprit cars being seized by police and their owners told they must pay up to the equivalent of one year salary to have them re-painted silver or white.
In 2017 the market reported an impressive performance, growing by 27% with 1.038 units sold, while in 2018, registrations almost tripled, booming at 223% with 3.360 sales. In 2019 sales have been 5.795, reporting an incredible 72.5% increase in sales compared to 2018.
Full-Year sales for 2020 have been 600, reporting an 89.6% decrease compared to 2019.
Brand-wise, this year the leader Toyota gained 2.1% market share, followed by Hyundai which gained 0.8% market share. Mercedes was in the third position and lost 1.1% market share.
The most sold model in the country is again the Toyota Corolla, holding 11.7% market share.
