21.07.2009

Car market of Kazakhstan

Sergey ABAKSHIN

Don’t sleep behind the wheel – your country needs every tax payer

All over the world overall increase of car market leads to decrease of abaction. In Kazakhstan, however, each one of those tendencies is acting separately. Only for the last time because of customs union between Russia, Belarus and Kazakhstan, they included the hand of Moskow, which desire is to promote Russian car industry. Meanwhile local car market is reliably divided between German and Japanese car makers. All of the other can be qualified as “other” group. 2009 07 21Kazakhstan yet didn’t passed through capitalism stage in its development. That’s why wealth here functions in prestige economy conditions, i.e. its basic meaning is to demonstrate. Automobile as wealth attribute and method of boasting is demanded very proactively. Businessmen (in traditional meaning of this word) are not on the first place in consuming luxury automotive brands. They honor the words of Pierre Danino: “You could miss that your business goes well, but the tax policy will notice”. All in all, logics of capitalistic production demands that the money must be in rotation. These hands doesn’t permit that tenth thousands of dollars just rolled on overfilled roads. State authorities are the whole other business. Even sharpen struggle with corruption, which periodically becomes hysteria, can’t force white collars to decline Porkers, Maybachs and Maseratis. They are accompanied by specific sort of businessmen, who working for corrupted government contracts. Ferraris and Gelandewagens are within the pocket of them. The quote, born on peak of economic boom, says, that “if you want to hide beyond the streets of Almaty – buy yourself a cool luxury 4×4”, didn’t lose its meaning nowadays. Wide presence of luxury cars on the roads, which shocking to foreign guests, however, doesn’t speaks of economical development of the country. And this not means that the crisis passed by, too. A whole conglomerate of different economies is formed in Kazakhstan. Economics of domestication of crude dollars is not the biggest in terms of employees, therefore it’s biggest in possibilities of appealing of high-priced lightweight vehicles. Only for it crushing into Bentley or Jaguar will be much harder on the streets of Astana and Almaty. Non-crude economics is very restricted by its economical possibilities. Instead, thanks to it in the first place there are middle-class vehicles on the streets. “Toyota” and “Volkswagen” have their niche to work on domestic market. The layer of such vehicles is relative score of middle-class in the country. It is not big (comparing to Germany and Czech Republic), but strictly exists. Economics of survival (it can concern small trade sphere, services and farmers), is oriented on used vehicles from Germany and Japan. They are most of all. Automotive pyramid on the country roads doubles the social structure of society in many respects. There are few rich people. The middle class is bigger, but no for a lot, and it centered generally in Almaty. Instead, the tones of poverty are most various. In truth, to clarify the luxury cars segment, it’s necessary to mark that rich people are buying themselves a number of high-priced cars at once. Buying high-priced cars in governmental structures and national companies with state participation is masked behind faceless expenditure “transport”. In time of economical growth there are 400 thousand cars were imported in Kazakhstan, with whole population of 16 million people. Now, the country will back on that level after five years, by optimistic prognoses; on pessimistic – never. At least, until the time when nation will grow to 20 million people, we can’t speak about buying levels of 2006. Simple motorists appeared in difficult disposition. From one side, their income decreased. From the other, all quality used cars from Germany are exported to CIS countries. Third – the Customs Union. Kazakhstan practically has no own automotive industry (only assembling of a few brands in Ust-Kamenogorsk), but participation in Union means preferences for Russian automakers. However, Russian cars are not tanks and rockets, they can be bought in mass by consumers only because despair. And powers of the state are working on this despair, through strong increase of imposts. The motorists are used to kick in the back from powers from authorities. For example, when they initially permitted export, and then denied exploitation of right-hand drive cars. After all, the State had to meet the motorists halfway, but anger left. In case of sharp increase of imposts, and with social-economical crisis conditions yet, it can’t be without an actions of protest from motorists. The question is open only about their strength, longevity and effectiveness. Meanwhile the car market is adopting to new conditions. From novelties of the last times: resurrection of small dealers on heavy problems background of large companies. One more spirit of the times – the car exchange. Formerly the owner assigned the price and everything came from this, now other variants are possible. Luxury car can be exchanged on less expensive one with money compensation, and vice versa. The other tendency is growth of the amount of green cars. Expensive novelties of global car industry are still coming on local market, which in one time witness about good-enough juncture of oil and gas sector and about the fact, that the struggle against corruption has no effect. The standard luxury cars in Kazakhstan has precisely standarв type of their owners. There are no changes in this. Common people expenses on cars are comparable to state military expenses in the period of warfare. But if a car happens to be basic transportation and basic survival in one time, there is no choice for them. As always, rurals are in more difficult status. The quality of public transport is not giving a reason for urban citizens to buy a car.

5 comments

  1. Anonymous

    Клевая статья. Понятная

  2. Anonymous

    очень банальные рассуждения. Всего то

  3. с флагом в правом верхнем углу сайта непонятка.

  4. Abrydla

    а у дефчоног с машинкой телефончег есть?)

  5. Darcy

    Such a stupid pointless article, the author didn't manage even to set the idea.Sometimes it's better to chew than speak.