Kazakhstan-Russia Car Market Shifts Amid Sanctions and Border Trade

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Demand for cars from dealers in Kazakhstan among Russians living near the border towns fell into a climate of renewed difficulty during the pandemic. Solvent Russian citizens were quick to take top equipment from Kazakh dealers that local residents did not rush to claim. Now, in the era of sanctions, Russians are generally broadening their purchases in Kazakhstan, according to Rossiyskaya Gazeta citing Nur. The trend covers both private deals and the purchase of entire car convoys by fleets.

The SaryarkaAvtoProm plant manufactures Kia, Chevrolet, Renault and JAC models.

According to the source, the number of people seeking locally assembled cars has surged tenfold in the last month. The focus is on vehicles produced at the SaryarkaAvtoProm facility. It is worth noting that JAC models assembled at this plant are officially delivered to the Russian Federation, and until recently they were cheaper here than in Kazakhstan. Today, it is more financially sensible for residents of Chelyabinsk, Yekaterinburg, Ufa, Tyumen, or Kurgan to travel to Kostanay to pick up a vehicle. Experts expect that in the short term this dynamic will benefit both Russian buyers and Kazakhstan’s auto industry. Yet the longer view suggests higher costs ahead will inevitably push prices higher across the market.

– An expert cited three methods to circumvent the ban on the sale of foreign cars in Russia.
– The strategy is also discussed in public videos and consumer channels.

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