Impact of Custom Union to Kazakhstan
custom uniMurat Serikbayev 20123402
Iimpact of customs union between Belarus, Russia and Kazakhstan' to the car market in our country
I want to start my Tethys from the history of Kazakhstan's car market, what are the prospects for the future and how it is influenced by the customs union. Before the financial crisis Kazakhstan’s car market demonstrated impressive growth, more than 25% annually, which is higher than in most developed countries. Used car market also was developed because it was cheap to buy a car abroad with a little customs tariffs in our country. So most of people preferred to have a used foreign car rather than a new car produced in Kazakhstan , it is might be because of quality of own produced cars and there are not so many choices. But after the crisis the car market rapidly declined approximately 30-40 %. The biggest factor of the recession, is a significant rise in the cost of loans by Kazakhstan banks and tightening requirements for borrowers. Used car market also showed the downturn. Until 2008, every second car buyer used the bank loan. Today to get the loan for purchasing a car can only one of the 20 buyers.
Nowadays Kazakhstan’s car market have 11 companies which officially sell about 40 foreign car brands. In addition to global brands we have the biggest Russian company “AvtoVaz”. Also we have own car plant in Ust Kamenogorsk which produces a car brands like AvtoVaz, Chevrolet, SsangYong, Chance, IVECO and Skoda for up to 45000 cars per year. Although until recently, the phrase "Kazakhstan's car" sounded like nonsense.
In July 2011 Kazakhstan fully joined to customs union with Belarus and Russia. In that time the public and the media met this statement negatively, arguing the right to freedom of choice of products because customs tariffs for cars increased up to 30% and plus 12% VAT, so it means that it is disadvantageously to buy a new or used car abroad in order to save money they are used to do in past like in 2007. But some
Iimpact of customs union between Belarus, Russia and Kazakhstan' to the car market in our country
I want to start my Tethys from the history of Kazakhstan's car market, what are the prospects for the future and how it is influenced by the customs union. Before the financial crisis Kazakhstan’s car market demonstrated impressive growth, more than 25% annually, which is higher than in most developed countries. Used car market also was developed because it was cheap to buy a car abroad with a little customs tariffs in our country. So most of people preferred to have a used foreign car rather than a new car produced in Kazakhstan , it is might be because of quality of own produced cars and there are not so many choices. But after the crisis the car market rapidly declined approximately 30-40 %. The biggest factor of the recession, is a significant rise in the cost of loans by Kazakhstan banks and tightening requirements for borrowers. Used car market also showed the downturn. Until 2008, every second car buyer used the bank loan. Today to get the loan for purchasing a car can only one of the 20 buyers.
Nowadays Kazakhstan’s car market have 11 companies which officially sell about 40 foreign car brands. In addition to global brands we have the biggest Russian company “AvtoVaz”. Also we have own car plant in Ust Kamenogorsk which produces a car brands like AvtoVaz, Chevrolet, SsangYong, Chance, IVECO and Skoda for up to 45000 cars per year. Although until recently, the phrase "Kazakhstan's car" sounded like nonsense.
In July 2011 Kazakhstan fully joined to customs union with Belarus and Russia. In that time the public and the media met this statement negatively, arguing the right to freedom of choice of products because customs tariffs for cars increased up to 30% and plus 12% VAT, so it means that it is disadvantageously to buy a new or used car abroad in order to save money they are used to do in past like in 2007. But some