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Sharp decrease of purchasing power and demand observed in Azerbiajnâ€™s car market

24 June 2011 13:48 (UTC +04:00)

Baku. Nijat Mustafayev - APA-Economics. Relative Activity has been observed in Azerbaijanâ€™s car market within Ma of 2011.

According to monitoring conducted by â€œProperty Market Participantsâ€ Industrial Union, sharp growth tendency of old cars stopped since the beginning of 2011, share of imported old cars decreased in supply portfolio.

â€œGrowth was observed in number of applicants in sales centers and dynamics of signed transactions. Despite relative growth of the dynamics within a month, the supply dropped 1.8%. In parallel with reduce of supply, tendency on exceeding the demand is still goes on. Though the dynamics of transactions signed rose within a month, no serious changes occurred in prices. Compared to the previous month, average price for May did not change in the market and made $15,115â€, told the Industrial Union.

At the same time, relative activity observed in the market caused decrease of period of carsâ€™ exposition during May. It went down from 49 days, by dropping 2.6%: â€œ23.6% of cars in the secondary car market were offered in May. Other 76.4% are the cars remaining from the previous months. And it is coordinated with not only reduce of import within the last year, but also decrease of purchasing power and sharp decrease of demand.â€

Share on offer of the worldwide German brand â€“ Mercedes Benz rose 1% compared to April, its share in total portfolio makes 30.3%. The most decrease of share on offer was observed in Hyundai cars (10.5%). The most offer growth was observed in cars of Russian production (3.5%). Investigations show that Mercedes Benz exceeds its rivals again, as it was in the previous months.

In general, share on offer of 9 brands made 86.7%. Other 13.3% was divided among more than 80 cars production of 20 companies.

In comparison with April, 1.8% reduce was observed in supply portfolio of the secondary car market.