Tashkent, Uzbekistan (UzDaily.com) — The level of car ownership in Uzbekistan is significantly lower than in neighboring countries, according to a new report by KPMG Uzbekistan titled "Analysis of the Automotive Market in the Republic of Uzbekistan." The report provides a detailed analysis of the country’s automotive sector, highlighting its strong growth potential.

KPMG Uzbekistan’s benchmarking analysis reveals that the number of cars per 1,000 residents in Uzbekistan is far behind neighboring nations, underlining the sector’s potential for expansion. The report states that in 2023, the average number of cars per 1,000 people in Uzbekistan was 103, an 8.4% increase compared to the same period in the previous year.

Tashkent leads in car ownership, with 197 cars per 1,000 residents in 2023. The Tashkent region ranks second with 136 cars, followed by Bukhara region with 118 cars per 1,000 people. In comparison, Russia has 327 cars per 1,000 people, Belarus –  330, Kazakhstan – 220, and Türkiye –175.7.

As of 1 January 2024, the total number of cars owned by individuals reached 4 million, of which 3.8 million are passenger cars. The report also highlights that Tashkent (597.93 thousand units), Samarkand region (417.17 thousand), and Tashkent region (414.62 thousand) lead in per capita car ownership, while Jizzakh, Navoi, and Syrdarya regions have the fewest cars per capita.

In 2023, 1.2 million cars, including light commercial and electric vehicles, were purchased in both primary and secondary markets. Of these, 295,000 vehicles, including commercial and electric cars, were bought on credit or leasing. About 94,000 vehicles were sold through various channels in both primary and secondary markets.

According to KPMG experts, the gap between Uzbekistan and other countries may narrow, and demand for cars is expected to rise as the economic situation improves and household incomes increase. However, the availability of financial resources also plays a key role in shaping demand.

KPMG Uzbekistan notes that by 2030, Uzbekistan aims to achieve a per capita GDP of US$4,198, which will significantly improve citizens’ welfare. To meet the goal of providing every family with a car, an additional US$18.46 billion in financing will be required for car purchases. Moreover, Uzbekistan will need 6 million more vehicles to reach 240 cars per 1,000 people, ensuring that each family has a car.

The KPMG Uzbekistan report also analyzes key trends, prospects, and goals for the development of the passenger car industry in the country. It includes an analysis of the passenger, light commercial, and electric vehicle markets, with forecasts until 2029 based on three modeling scenarios.

According to KPMG Uzbekistan, under the conservative scenario, new car sales could reach 545,000 units by 2029. Farrukh Abdullahanov, Partner and Head of Advisory Services at KPMG Uzbekistan, commented, “In this report, our team sought not only to analyze the current state of Uzbekistan’s automotive market but also to forecast its potential. We conducted a series of interviews and surveys with key market players, including manufacturers and distributors.”

Saltanat Sandykbayeva, Partner and Head of Investment and Capital Markets at KPMG Uzbekistan, added, “One of the key factors driving the growth of cars in Uzbekistan has been the development of auto lending and alternative financing methods such as leasing and installment plans. We believe these factors will continue to significantly influence car sales growth in the near future.”

It is worth noting that the volume of auto loans in Uzbekistan increased from US$801 million in 2021 to US$3.11 billion in 2023.