OREANDA-NEWS. September 24, 2009. UzDAEWOO is a popular brand that has representative offices in Minsk, Gomel, Mogilev and Grodno.  Several new automobile sales centers are expected to be launched in August, 2009. The talks are conducted to launch dealing centers in Vitebsk and Brest.  Though, to understand the conditions in which genuine cars are being sold, it would be really important to examine Byelorussian car market in general. Thus, to go deep into the specific character of Byelorussian car market, we need to sort out some peculiarities and trends it has. It is a well-known fact that manufacture of cars and their sales, decrease in all countries around the world. In July, 2009 such countries as Byelorussia, Russia and Ukraine, failed in getting benefit and lost around 50 – 70 % of their profit correspondingly. 

 However, if we compare Russia and Ukraine to Byelorussia, we will find out that the loss of 25 % seems relatively optimistic. Many experts agree that the growing number of proposals, made by banks, to buy a car in credit, influenced the situation. By the way, the most important thing is that the proposal is, in fact, effective. The positive thing of Byelorussian economics and car market appears to be the active investment policy of the state.

 Unlike Russia, where both Russian and foreign cars are manufactured, Byelorussia has only one car-manufacturing company “Unison” CC, which manufactures “Samand” car models. Thus, car market in Byelorussia is much more dependent on directly-imported cars than car market in Russia. At the same time, demand of Byelorussian domestic market even during recession is estimated with 15-16 thousand of new cars per year. And it is not as small figure as it may seem.

In the second quarter of 2009 car market in Byelorussia demonstrated positive dynamics. The increase in sales of new cars made 8,7 %. However, if it is compared to 2008, then we see that the market decreased up to the 30 %. 

The feature that makes Byelorussian car market unique is its immediate proximity to European states, in particular, Poland and Lithuania. Hence, there is a variety of cheap used foreign cars. Nevertheless, the inquiries show that more than half (59%) of the potential buyers consider the purchase of new car more preferable.In general, the economic situation in Byelorussia today is similar to the situation in Russia and Ukraine. However, there are some peculiar features too.  One of them is unstable demand. The main reason of such trend is in negative expectations of the national currency’s devaluation, increase in import duties on foreign cars and import restrictions.

There are several factors that influence the car market in Byelorussia. We can point out the following:
-          real production has slumped
-          population incomes are reducing
-          consumers overestimate their potential
-          national currency devaluates
-          volumes of credits are falling

Despite the increase in sales of new cars, the experts of Automobile Association of Byelorussia are still skeptical. By the end of the year they forecast market to fall considerably, down to the 40 %.. At the same time, they say the demand for most popular car models will grow.   Even now, there are different marketing arrangements that give consumers a chance to buy a car with good discount. As it has already been said, the recovery in the sphere of automobile crediting is evident. Now let us find out how UzDAEWOO feels at Byelorussian market. In accordance with results of 2008, Matiz became the leader of sales among cars of the same class. More than 80 % of the sold cars were taken by Matiz (according to Automobile Association of Byelorussia). Such trend can be easily interpreted.

The potential buyers of UzDAEWOO cars are people of middle-class, both man and woman. In most cases they are the employees of state enterprises. Matiz is small and compact and in the past, people who preferred it were mainly women. But nowadays, many man choose this car. Nexia is a favorite popular among middle-aged couples. The first half of 2009, the dynamic growth in sales of UzDAEWOO cars in Byelorussia was especially evident, if we compare it to Ukraine, for example. If we compare first and second quarter we will find out that in the second quarter sales grew more than twice. So, there are not any reasons to feel worried.

The automobile market in Byelorussia is very sensitive to any kinds of marketing activities. As a result, UzDAEWOO’s management is sure that the basic marketing advantages of the company are in general consumer-oriented approach and the program of preferential car crediting. The same purpose is also going to be reached by optimization of logistics chain because the distance between Uzbekistan and Byelorussia is very large. UzDAEWOO tries to do everything for its client could feel comfortable. Let us summarize. There are certain results of successful work made by dealer centers in Byelorussia: sales have increased, UzDAEWOO car models are very popular among people, system of preferential car crediting is on, attractive proposals are being received, and a lot of discounts and projects are being held.