Oil Fuels Car Purchases

May 2006 | Industry Forecast

Consumer demand for cars will be determined by disposable income, access to consumer credit and the price of oil. Most of Central Asia is poor, with poverty levels varying from 35% in Kazakhstan, 51% in Kyrgyzstan, 53% in Afghanistan and 83% in Tajikistan - there are no reliable statistics for Uzbekistan and Turkmenistan. As such, most of the Central Asian population cannot afford new cars and the used car market is likely to remain buoyant, although much of it will remain on the black market. High oil prices will boost Kazakhstan's economy, leading to an increased demand for consumer durables

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