Kyrgyzstan Vehicles Market in 2019 is hit by a huge drop. Indeed, Year to Date November figures were at 1.369, projecting the full year to 1.491 (-36.4%). Lada is leading ahead of Hyundai and Honda.
Economic Environment
Kyrgyz economy slowed further in January–October, following January–September’s deceleration. Ebbing mining activity at the all-important Kumtor gold mine, coupled with a loss of steam in the manufacturing sector and flat fixed investment growth, led the slowdown.
Moreover, electricity supply declined at a faster clip in January–October; water supply lost pace compared to the first nine months of the year; while growth in the wholesale and retail trade sector was flat in January–October, despite sturdy remittances inflows.
On a brighter note, exports picked up steam in the period compared to January–September, despite the challenging international environment, likely buffering the slowdown in overall activity.
Market Trend
Against a backdrop of weak external environment, the Kyrgyz authorities pursued an expansionary fiscal policy and relaxed the monetary stance, boosting domestic demand in the short run. And, while increased government spending supported economic activity, it came at the cost of significantly reduced fiscal buffers, which had been built up in previous years. Economic growth decelerated slightly to 3.4% in 2017 and is expected to recover to 4% over the medium-term, owing to remittance supported-consumption.
Kyrgyz vehicles market is still one of the smaller in the World, despite over 6 million people are living in this central Asian country. The most of circulating park is very old and just recently the OEMs have approached the market. Toyota, for instance, landed in the country only at the end of the 2012.
In the 2017 total light vehicles sales have been 2.210, up a little 5%, and in 2018 kept the same trend, growing just 6.1% with 2.345 units sold.
In 2019, the market is hit by a huge drop. Indeed, Year to Date November figures were at 1.369, projecting the full year to 1.491 (-36.4%).
In the competitive landscape, Lada is the market leader, ahead of Hyundai and Honda.
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