What is Happening in the Automotive Market

According to the "Zhoghovurd" newspaper, during the first four months of this year, the volume of car trade in Armenia reached 26 billion 923 million 600 thousand drams. Based on the data released by the Statistical Committee of the Republic of Armenia, this figure is 5.9 percent lower compared to the same period last year.

In the largest car market in Armenia, trade is reportedly stagnant. The reasons include not only the global turmoil caused by the coronavirus and the state of emergency declared due to it, but also the fact that potential buyers from Kazakhstan have not stepped into the automotive market since the beginning of this year.

Recall that the Kazakh side has created serious problems for Armenians selling cars. It has turned out that Armenians were not allowed to sell cars to Kazakhstan after entering the EAEU during the transitional period; these vehicles were supposed to be used only by citizens of Armenia residing permanently in the country. Apparently, many Kazakhs were simply unaware of this when attempting to purchase a vehicle.

Furthermore, during the first four months of this year, the total turnover of trade in Armenia decreased by 8.6 percent compared to the same period last year. The "Zhoghovurd" newspaper learned from the Statistical Committee of the Republic of Armenia that retail trade turnover also declined by 10.1 percent in the same timeframe. Meanwhile, wholesale trade turnover in the first four months of this year decreased by 7.3 percent. However, according to experts, these figures were expected, as the situation in Armenia has been tense in recent months; the state of emergency declared due to the coronavirus cannot but affect trade and business.