The FINANCIAL — Auto dealers from Kazakhstan, Azerbaijan and Armenia are buying cars in Georgia. This is the latest trend in the regional auto market since the largest auto fare was opened by Ukrainian Private Group last year.
By the end of this year Rustavi will be adding 2 new auto fares to the older one established in December 2009 which was removed from Didi Digomi. The new auto fares will be built by Iberia Business Group (IBG) and by Bank of Georgia Subsidiary SB Real Estate. Construction is now underway.
IBG, which is a holding of 8 strong automobile brands – Volkswagen, Reno, Audi, Skoda, Nissan, Mitsubishi, Kia Motors and Peugeot, will have an auto fare stretched over 2 hectares of land in Rustavi which will be equipped with a full technical inspection of cars, hotel and custom clearance as well.
“We’ll be direct competitors of the existing auto fare in Rustavi,” claims Vakhtang Alkhanishvili, Director of IBG.
“Demand for automobiles is increasingly high still in Georgia – thus we want to expand our operations and provide a full service in one place,” said Alkhanishvili.
“Customers will have maximum comfort while purchasing and selling cars whether they’re new or used ones, also a trade-in system will be working there. In addition technical inspections will be available and a hotel for visitors from neighbouring countries as demand is also increasing from there,” said Alkhanishvili.
Another new trade fare currently under construction belongs to Bank of Georgia subsidiary SB Real Estate which itself owns insurance company Aldagi BCI’s 6 hospitals as well as 2 unfinished hospitals of Archimedes Global Georgia.
The existing auto fare in Rustavi which is run by Ukrainian “Private Group”, holds 5,000-8,000 cars every weekend, of which at least 10% are sold.
“There is a growing demand for automobiles in Georgia and especially from a number of neighbouring countries, those of Khazakhstan, Ukraine, Azerbaijan, Armenia and the Russian Federation (Vladikavkaz). All these people are attracted by the few regulations and low charges on export from Georgia,” said Koba Mamukovi, PR and Marketing Manager, to The FINANCIAL.
“To go through customs clearance in Georgia is very cheap and the country also has a sea port through which cars are imported easily and then exported to neighbouring countries,” said Mamukovi in an interview with The FINANCIAL.
“Recently there has been a boom of cars demanded by Kazakhstan and especially newer models. The fact of the matter is that only cars issued in 2003 and up can be exported there as Kazakhstan has a limitation on the age of the cars and fewer taxes are paid on such cars,” said Mamukovi.
“The prices of cars at our fare start from 1,000 USD, going up to 100,000 USD, and there are various vehicles – mini-vans, SUV, minibuses etc for sale too,” he said.
“The number of cars at the weekend fare amounts to 8,000 whilst on week days it’s about 3,000-4,000. Out of those cars, at one show at least 10% are sold,” said Mamukovi to The FINANCIAL.
“Out of the buyers Georgians amount to 60% whilst the rest are from neighbouring countries,” said Mamukovi.
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