The supply in the world car market may be significantly higher than the demand this year, Swiss bank UBS reports.
According to calculations, by the end of the year, worldwide car production will exceed sales by 6%.
As car orders are already processed, it is unlikely that the cost of vehicles will fall in the first half of the year. However, a slowdown in global economic growth and increased consumer spending on everyday necessities is expected to decrease the need to purchase new cars.
This leads to depreciation in car value and a "price war" between producers.
According to analysts, some electric vehicle manufacturers had to lower retail prices for a number of models due to rising energy and electricity costs.
For instance, in January, Tesla reduced retail prices for its models in Great Britain: the reduction reached £8,000. The secondary market is also suffering - in Britain, resale electric vehicles are about 13% cheaper, on average £33,000.
According to UBS, within a few months, this trend will also concern the manufacturers of cars with internal combustion engines (traditional vehicles).
What is the situation in Uzbekistan?
Car sales in Uzbekistan reportedly increased to a record level of 1.4mn units in 2022. In January-December 2022, some 328,118 cars were produced in Uzbekistan. This is an increase of 91,451 cars compared to 2021.
In terms of manufacturing, Cobalt cars led the production in 2022 with 101,617 units for the second year in a row.
Gentra model was in second place with 87,105 units, while Damas was third with 72,235 units.
The number of domestically produced cars grew by 49% in 2022 and the new foreign car market expanded by 35% compared to 2021.
Thus, supply is not expected to exceed demand in the car market of Uzbekistan.
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