Eastern light vehicle markets set to grow, says Frost & Sullivan

A new study from Frost & Sullivan says that Eastern Europe and Central Asia offer very interesting opportunities for the light vehicles sector which includes passenger cars and light commercial vehicles. The study analyses this market in Kazakhstan, Uzbekistan, Ukraine, Azerbaijan, Belarus, Kyrgyzstan, Turkmenistan and Tajikistan, and finds that by 2021 the annual light vehicle sales volume in these eight countries is expected to reach nearly one million.

“The upward trend will be driven primarily by low vehicle density, old vehicle parc and booming economic activity supported by surging middle-class population,” explains Anna Ozdelen, Consulting Analyst, Automotive & Transportation, at Frost & Sullivan. “Kazakhstan, Uzbekistan and Ukraine are expected be top regional markets for automotive sales and production.”

According to Frost & Sullivan, the top five markets (Kazakhstan, Uzbekistan, Ukraine, Azerbaijan and Belarus) will continue to account for 98 percent of light vehicles sales. Kazakhstan will become a priority market for automotive investment being the gateway to the marketplace of Eurasian Economic Union, boasting surging demand in the domestic market as well.

“GM, Renault-Nissan, Hyundai, Volkswagen and Toyota represent the top five leading OEMs accounting for 75 percent of the total market in 2014,” confirms Mohamed Mubarak, Automotive Principal and Regional Head. However, Chinese players are expected to increase their penetration in both production and sales.