The FINANCIAL — Import of cars surged by 11% in 2010 (latest figures) compared to that of 2009 in Georgia (that is from 37,811 to 41,721 vehicles).
The figures were attained from the national statistics office of Georgia which also says that the re-export of cars from Georgia (of already imported cars) has grown by an unprecedented 650%, namely from 3,177 to 20,752 vehicles throughout 2010.
Most of the cars’ re-export was to Armenia and Azerbaijan (by-passing Georgia).
As the import of cars is rising so are the sales figures of companies operating in Georgia.
Sales grew by 30% from the second half of 2010 in Hyundai Georgia office. As Sales Manager Vladi Makoyan told us, this was mainly due to the introduction of new models of Hyundai and generally due to the revitalization of the automobile market in Georgia.
“No comparison can be made with 2009 sales when we were selling cars with almost 0% sales margin (at original prices). But later on in the second half of 2010 the situation has drastically changed and still continues to, with car sales over the New Year boosting,” Makoyan told The FINANCIAL.
“The most demanded model of Hyundai is the Cross Over ix 35. We expect car sales to rise in 2011 as the trend shows this and we’re very hopeful about it. The growth can also be attributed to bank renewing instalment conditions of Bank of Georgia and Bank Republic on car loans,” claims Makoyan.
Toyota Centre Tbilisi is also reporting a growth of car sales.
“Demand for Toyota sales is stable and shows steady growth from the end of 2009 till now. Despite the fact that overall sales of Toyota models were higher in 2009 than in 2010, still sales of particular new models like the Land Cruiser Prado VX 4.0L which costs 59,000 USD has been increasing throughout the year,” said Nino Gagua, Head of the Sales Department.
As Gagua notes, the ratio of people buying cars on credit and ones purchasing straight away is 50/50 at Toyota Centre Tbilisi.
“Now there is huge demand for Land Cruiser Prado and Rav-4. The minimum price of Toyota models is from 17,000 USD, that of the “Yaris” brand and goes up to 103,800 USD for the Lexus LX570,” Gagua told The FINANCIAL.
“With regards to the woes about recalling Toyota brands (of Rav-4 and Corolla) due to technical accelerator pedal problems, they weren’t present in Georgia massively, as only single units of cars had been taken for inspection. The recall was mainly in American/UK and European markets,” claims Gagua.
Globally, 8.5 million cars have been recalled by Toyota (by March 2010), including around 450,000 Prius hybrid models. Since the recall began, Prius sales have fallen 60%, forcing cuts in production. Customers had complained about defective brake pedals, which could fail when the cars moved between electric and petrol power, and further issues with sticking accelerator pedals in previous model of Prius.
Global Auto Sales Outlook – 2011
According to global economic research, January 5, 2011 report, the recovery in auto sales which started in the spring of 2009 will lift volumes to record highs in 2011.
The emerging markets of China, India and Russia will continue to lead the way, but the U.S. market is also expected to post its second consecutive double-digit increase in the coming year.
China became the largest auto market in 2009 surpassing sales in the U.S. Purchases soared an additional 30% over the past year leading the global auto recovery.
As the report suggests in 2011, new car sales in China and other BRIC nations will surpass the combined volumes of Western Europe and Japan, and account for roughly thirty percent of global car sales.
Historically, the fastest growth of vehicle sales are experienced by countries where per capita income is in the 4,000-6,000 USD range – says the report by global economic research.
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