The FINANCIAL — Sales figures for the auto sector in Georgia have increased significantly in 2013 according to official statistics. The export and import of cars in Georgia continues to grow in 2013 as well. Auto dealers have come up with different ways to achieve better sales indicators such as offering customers new models, affordable prices and better service.
“For the first time ever, the Rustavi auto market “Autopapa” was at full capacity during the hitherto quietest season in the automotive business. The bestselling cars are Mercedes and Opel models,” said Tamar Mashava, Head of the Marketing Department. “The auto market in Georgia is developing rapidly. In just four years Georgia has become a centre of trade for cars from across the whole of the Caucasus. 85 percent of cars imported in Georgia are then re-exported which confirms Georgia’s role as a regional centre in the car trade,” she added.
The auto market Autopapa is a place where mainly used cars are sold.
As a result, the sales turnover of auto dealers, with the exception of retail sellers, in the first quarter of 2013 amounted to GEL 301.4 million when the same quarter of 2012 showed sales turnover of GEL 272.8 million only, according to the National Statistics Office of Georgia. Overall sales turnover amounted to GEL 1,289.1 million in 2012.
The number of cars imported in Georgia in 2012 was 67,099, with a total value of USD 662,759.3, while the number of cars imported in Georgia in 2011 was 57,198, with a total value of USD 510,545.3. As for January-May of 2013, 32,130 cars have been imported in Georgia already with a total value of USD 283,618.0, this according to Geostat.
The statistics are showing an increase in the number of exported cars from Georgia as well: 46,183 cars with a total value of USD 450,296.6 in 2011; 58,095 cars with a total value of USD 587,296.3 in 2012 and 25,710 cars with a total value of USD 260,374.6 for January-May 2013.
In general, there is a steady growth trend of 30 percent in import, export and re-export of automobiles in Georgia, according to the statistics.
There are currently 213 car trader enterprises operating in Georgia.
One of the new trends for 2013 is crossover automobiles, so called “small jeeps”, according to auto dealers. Bright colours are also trendy this year. Customers who buy new cars tend to go for white, orange, blue and red coloured cars. Cars with diesel engines are more popular than others.
“Demand is increasing for models which did not interest our customers so much before,” said Ia Modebadze, Marketing Manager at Iberia Business Group, an official representative of Volkswagen, Audi, Skoda Auto, Mitsubishi Motors, Peugeot, Kia Motors and Renault. Iberia Business Group invested GEL 4 million in Rustavi to open a new automotive market there called “Myauto” in 2011. “The most popular cars in recent days have been the Kia Cee’d and Kia Soul. Generally speaking, each brand has its most popular models such as the Kia Sportage and Cerato, Vokswagen Tiguan and CC, Mitsubishi Pajro and ASX, Audi A8 and Q5.The fact that Skoda has issued a brand new model called “Rapid”, which is for sale in the retail market, has led to increased customer interest in the group. Due to the affordable prices and good offers at Kia, the company has greatly increased in popularity recently. As for Mitsubishi, its advantage lies in it being off-road – it handles very well in places where there is literally ‘no road’,” she added.
On average the prices for cars at IBG vary from USD 11,000 to USD 130,000: Kia Motors – from USD 11,000 to USD 50,000; Volkswagen – USD 18,000 to USD 70,000; Mitsubishi – USD 18,500 to USD 40,000; Skoda – USD 14,200 to USD 35,000; Audi – USD 50,000 to USD 130,000.
Hyundai Auto Georgia sold 444 cars in the first 6 months of 2013. Mariam Giorgobiani, its PR and Marketing Manager, said that there has been no significant growth at the company this year compared to 2012. The Elantra, ix35 and Accent models are the bestselling cars at Hyundai Auto Georgia, according to Giorgobiani. The prices vary from USD 11,500 to USD 72,000.
Customers can buy cars at Toyota Center Tbilisi for between USD 17,600 and USD 78,700. “In our showroom at the moment we have a Lexus, which is a business class, luxury brand and costs USD 145,000,” said Nino Gagua, Sales Manager. “In general, our market is cheaper compared to markets in Azerbaijan or in Armenia. Nowadays when Georgian customers come to buy a car, they tend to be very well-informed and prepared in advance. In the past we were seeing people that were a bit more unsure. There has been a noticeable shift in the confidence levels of our buyers, however, and now when they come in they know what they want and they tell us what it is that they need. They are already putting emphasis on the value of long-term aspects. Customers do not only pay attention to the visual aspect of cars now, but the technical side as well. Taking into consideration all of these factors, the Toyota RAV4 is the overall bestselling car, not only in Georgia, but worldwide as well. The Land Cruiser 200 and Land Cruiser Prado are favourite cars with Georgian customers,” she added.
Porsche Centre Tbilisi, having presented the restyled “Panamera” recently, is going to celebrate the 50 year anniversary of its 911 car and sell its new 911 Turbo and Turbo S from September. The company had a 20 percent drop in annual turnover in the first quarter of 2013. But in the summer, the annual turnover increased by 50 percent compared to 2012. The prices for their cars vary from EUR 41,000 to EUR 75,000 according to the different models.
“The bestselling models are the Porsche Cayenne and Porsche Panamera,” said Ketevan Khuntsaria, Commercial Director at Tegeta Premium Vehicles Porsche Center Tbilisi. “When choosing a new car customers pay a relatively large amount of attention to the prestige and sportiness of the vehicle. Good quality, comfortable and economic cars tend to be in high demand as well,” she added.
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