The FINANCIAL — Despite the significant reduction of auto re-export to Azerbaijan, the import of vehicles in Georgia increased by 17% in 2014. Georgian re-exporters have seen a 45% reduction of sales. The recent decision of the Azerbaijani Government to increase excise rates on imported cars is predicted to be another hit for Georgian dealers. Meanwhile the new year is full of promise for the leading Georgian auto dealers that are importing brand new cars. The companies ended 2014 quite successfully and are still expecting over 20% sales growth this year.
According to the Georgian National Statistics Center, GeoStat, Georgia imported 87,987 vehicles, worth USD 654,939,800, during the first eleven months of 2014. The number was 72,980, worth USD 638,198,600, during the same period of the previous year.
Georgians re-exported 42,341 vehicles, worth USD 478,683,200, in 2014, down from the 65,498, worth USD 621,946,900, of 2013. With 22,113 vehicles Armenia became the top destination for Georgian auto re-exporters. Re-export to Azerbaijan totalled 16,354 units in 2014, while the figure was 40,442 in 2013. Georgian auto dealers started losing the Azerbaijani market from the beginning of 2014 when the country implemented the Euro IV standard.
With 40,101 units, Japan tops the list of countries from which Georgians import the largest share of vehicles. It is followed by the USA with 19,945 units, and Germany with 16,968 units.
Germany’s Mercedes-Benz is the most imported vehicle in Georgia. Its number totalled 16,667 units in 2014. Mercedes-Benz is followed by Toyota – with 9,508 units, BMW – 7,791 units, and Opel – 7,236 units.
The leading Georgian auto dealers importing brand new vehicles ended the year 2014 quite successfully and expect further growth in 2015.
Aka Mercedes-Benz Georgia sold 135 units in 2014. The number is 32% more than the sales of the previous year. “The growth was linked to the introduction of the new model SUV Mercedes-Benz GLA and also to the economic growth that the country experienced,” Lasha Lomidze, Sales Manager at Aka Mercedes-Benz Georgia, told The FINANCIAL.
The bestselling model at Aka was the Mercedes S-Class, worth around EUR 100,000. It made up 30% of the total sales volume.
“In 2015 we expect sales growth of 10%. Our expectations are based on the country’s estimated GDP growth,” said Lomidze.
One of the favourite auto brands among Georgians – Porsche – is officially represented by Porsche Centre Tbilisi, owned by Tegeta Motors. The Porsche brand ended the year 2014 according to plan. The autumn and winter periods were especially active for them. During this time the sales of the company exceeded the predicted monthly plan by 1.5 times.
“Porsche saw sales growth globally in 2014 and Georgia was no exception. We saw sales growth of over 15%. 2014 was marked by innovations for Porsche Centre Tbilisi. Porsche Macan was added to the list of our models. It encouraged sales growth,” said Ketevan Khuntsaria, Commercial Director at Tegeta Premium Vehicles, Porsche Centre Tbilisi.
Traditionally, the bestselling model was the Porsche Cayenne. It makes up 70% of the sales portfolio. In Khuntsaria’s words, Porsche Cayenne offered various innovations in the beginning of the year – the limited Platinum Edition and in autumn the renewed model of 2015 worth from EUR 54,900. She added that the Porsche Macan was the second bestselling model. In her words, due to its limited quotas many consumers are waiting for it to become available in 2015.
Porsche Centre Tbilisi expects approximately 19% sales growth in 2015. “Our prognoses are based on the renewed and improved models we now offer, as well as the innovations implemented in 2014, including the opening of a new service centre in Georgia,” Khuntsaria said.
Japan’s Mazda is also offered by Tegeta Motors in Georgia. The brand also saw sales growth during 2014. “The range of Mazda models was updated at the end of spring 2014. Offering new models resulted in sales growth. The Mazda CX 5 is the most in-demand model. It makes up 65% of total sales. The price for this vehicle varies from USD 27,000 to 34,000,” said Khuntsaria.
“We plan to import renewed models of Mazda this year. We will have free stock in trade, consumer-oriented instalment and insurance conditions and many other innovative offers. All of this will result in growth of realization by 30%,” she added.
2014 was fairly successful for Iberia Business Group (IBG), the official representative of Volkswagen, Audi, Skoda, Peugeot, Mitsubishi, Renault, Kia and Seat.
“Korea’s Kia Motors remains the bestselling retail brand in the Group. The most popular models were the Kia Crossover, Kia Sportage and Hatchback Kia Rio,” said Ia Modebadze, Marketing Manager at Iberia Business Group (IBG).
According to Modebadze, the year was successful for the German auto brand Volkswagen as well. The brand entered the new corporate market and started supplying emergency service with vehicles in the regions.
IBG acquired a new brand – Seat. “As a member of Volkswagen Group globally, it is presented at Volkswagen’s showroom. The first several models have already sold. In 2015 we plan to arrange an official presentation of the brand,” Modebadze said.
In 2014 IBG completed the construction of a new centre of Audi. The showroom will soon have its official opening.
The previous year has been successful and full of important innovations for Toyota Center Tegeta. In March 2014 the company acquired the status of official dealer of Toyota and authorized service centre. Active realization of the brand started from July. Currently the company offers the following models: the Toyota Corolla, Camry, Rav4, LC150 Prado, LC200, LC70, Hilux, Prius, Highlander, Hiace and Coaster. The Land Cruiser Prado is the bestselling model of the company overall.
“Toyota Center Tegeta is operating successfully on the market. Many individuals, corporate and governmental organizations have become our clients. Purchasing vehicles via bank loan is quite popular with our customers. In this regard we offer various gifts for the clients of ours that purchase cars via instalment plans. From November till 15 January we offered a joint campaign with Bank Republic and the insurance company Kopenbur. During this campaign the results exceeded our expectations. More than half of the vehicles purchased during the period of this campaign were purchased via bank loan,” said Natalia Goderdzishvili, Marketing Specialist at Toyota Center Tegeta.
“The results of 2014 as well as the campaigns, offers and services that we have scheduled for the future will encourage stable growth of our sales,” Goderdzishvili told The FINANCIAL.
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