Tashkent, Uzbekistan (UzDaily.com) -- In Uzbekistan, the number of transactions with used cars is about 3.5 times higher than the number of transactions with new cars. At the same time, the total number of cars sold in the secondary market in January-October of this year amounted to 906,500 cars.

An expert from the Center for Economic Research and Reforms (CERR) conducted an analysis of the secondary car market in Uzbekistan for 2022.

Thus, 70% of the secondary car market is accounted for by cars produced in Uzbekistan, 5 times less market share or about 13% of the total market is occupied by VAZ (Lada) cars, another 2.5% by GAZ cars and 2% by Hyundai. The analysis showed that 4-5 used foreign cars account for 10 used domestic cars. Over the year, the share of electric vehicles in the secondary market has almost doubled.

The analysis shows that the structure of the secondary car market consists mainly of domestic cars, whose share is 70%, cars produced by VAZ (Lada) 12.7%, GAZ 2.5% and Hyundai 2%. A notable highlight this year is the rise in BYD's share of electric vehicles, which was 0.1% in 2021 and reached 1.2% in 2022. Overall, the share of electric vehicles in the secondary market increased from 0.4% in 2021 to 2.28% in 2022.

The most popular used cars this year were Lacetti, Cobalt, Spark, Damas, Nexia 2, Nexia 3 and VAZ 2106, the total share of these cars is 48% of the total number of cars sold.

At the same time, among these cars, buyer preferences by model were divided as follows: 5.2% Lacetti (3rd position), 4.9% Cobalt (4th position), 4.1% VAZ (Lada) 2106 and 3.0% Spark (2nd position). 

Average prices for used cars of various models

In 2022, car prices in the secondary market increased by an average of 12-15% compared to the same period of last year. At the same time, prices for different car models have changed in different ways.

In particular, Damas went up by an average of 15%, VAZ (Lada) 2106 by 12%, Lacetti (3rd position) by 16%, Spark (2nd position) by 18%, Cobalt (4th position) by 20%, Nexia 3 (4th position) by 18% and Malibu 2 by 7%. Among foreign cars, the largest increase in prices was noted for cars KIA Carnival by 12%, Lada Vesta by 18% and Hyundai Sonata by 6%.

Used car depreciation assessment

According to the results of the econometric modeling method, other things being equal (when comparing cars of the same brand, position and year of manufacture), depreciation (wearout and tear) of a car in one year leads to a decrease in cost by an average of 3% compared to the previous year.

At the same time, the analysis showed that different car models change in different ways, for example, Damas depreciates by an average of 2.5% per year, Lacetti (3rd position) by 3.0%, Nexia by 2.4%, Spark (2nd position ) by 3.2%, Cobalt (4th position) by 3.9% and Malibu 2 by 5.9% per year.

In addition, in 2022, the average year of production of cars in the car market was 2011, which corresponds to an average age of 11 years. Similarly, in 2021 the figure was 2008 and in 2020 it was 2007, corresponding to an average age of 13 years. This suggests that cars in the secondary market are getting younger, which is associated with an increase in the number of resales of relatively new cars.

Used car mileage estimate

The average used vehicle mileage per year is calculated to be 22,131 km, using vehicles manufactured after 2012 for the calculation. In addition, the distribution of annual car mileage was studied, as a result of which it was found that 60% of car owners in Uzbekistan drive an average of up to 22,000 km per year, 20% - from 22,000 to 30,000 km, and the remaining 20% - from 30,000 to 100,000 km per year. Based on these results, three main groups of drivers were identified.

Thus, the majority of car owners were assigned to the first group, where the daily mileage does not exceed 60 km per day, and the car is mainly used for driving around the city and for their own needs. The second group includes car owners who drive up to 82 km a day, who come/leave for work/study from the suburbs every day, or city taxi drivers. The 3rd group of drivers drives up to 274 km per day, this group included urban and intercity taxi drivers.

In addition, the average annual mileage of cars in the secondary market varies depending on the region. Among the regions, the highest mileage rates are observed among car owners in the Syrdarya region 29.6 thousand km, Andijan region 27.4 thousand km, Jizzakh region 27 thousand km, Ferghana region 26.8 thousand km and Tashkent region 25.5 thousand km

In the city of Tashkent, the average mileage of used cars is from 22 thousand to 23.2 thousand km per year, while 38% of the secondary car market falls on this region.