Kyrgyzstan. In 2018 the auto market grew up 6.1%

kyrgyzstan Vehicles

Kyrgyzstan Vehicles Market in 2018 held the previous year’s growth. Indeed, the year ended with sales at 2.345 (+6.1%). Traditionally fueled by imported used vehicles, actually the industry is building up an import infrastructures for new vehicles.

Economic Environment

Kyrgyz economic growth slowed during January-November 2018. This deceleration was the result of slower growth in both gold production and the non-gold industry. Export performance remains weak, largely on account of a sharp slowdown in gold exports, and in spite of trade opportunities within the Eurasian Economic Union.

Attracting private investment remains a challenge and ecent developments point to limited progress in addressing structural issues over the past few years.

Market Trend

Against a backdrop of weak external environment, the Kyrgyz authorities pursued an expansionary fiscal policy and relaxed the monetary stance, boosting domestic demand in the short run. And, while increased government spending supported economic activity, it came at the cost of significantly reduced fiscal buffers, which had been built up in previous years. Economic growth decelerated slightly to 3.4% in 2017 and is expected to recover to 4% over the medium-term, owing to remittance supported-consumption.

Kyrgyz vehicles market is still one of the smaller in the World, despite over 6 million people are living in this central Asian country. The most of circulating park is very old and just recently the OEMs have approached the market. Toyota, for instance, landed in the country only at the end of the 2012.

In 2017 total light vehicles sales have been 2.210, up a little 5%.

In 2018 the market kept the previous year’s trend, growing just 6.1% with 2.345 units sold.

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