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Marchenko: Car prices will go down amid normal competition environment

05 july 2011, 19:21
0
Gregory Marchenko. Photo by Yaroslav Radlovskiy©
Gregory Marchenko. Photo by Yaroslav Radlovskiy©
After Russia and Kazakhstan enter the World Trade Organization (WTO) car prices in Kazakhstan may change amid the normal competition environment, Tengrinews.kz reports citing Chairman of Kazakhstan National Bank Gregory Marchenko.

Kazakhstan media has been actively discussing tpressureess of Russia and Kazakhstan's entering the WTO lately. In this relation, some experts say that car prices can go drastically down. According to the Minister of Economic Integration Zhanar Aitzhanova, customs duties on cars will be cut by 20 percent in case Kazakhstan enters the WTO.

“There are many opinions and they are quite opposite frequently. It would be good if the prices go down sharply. It is hard to say what these forecasts are based on, and when we speak of the Russian market, many experts forget that we are no longer talking about production of just Zhiguli or Moskvich cars,” Marchenko noted.

Marchenko reminded about the situation at the car market when the Government just announced creation of the Customs Union. According to Marchenko, back then, Kazakhstan dealers tried to use the situation to their advantage by raising prices. “Russian dealers immediately appeared at the market and said that they were ready to sell under old prices. Then everyone suddenly realized the situation and suggested to start assembling cars in Kazakhstan,” he said.

“It is very good, when there is a competitive environment and that creation of the Customs Union facilitates the market expansion. It will enhance the competition and when this happens the prices go down, of course. We see this situation at the market of electronic appliances. I think the same will be true for cars, if the competition environment is good,” Marchenko stated.

By Daniyar Bozov



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