Tashkent, Uzbekistan (UzDaily.com) -- The Center for Economic Research and Reforms (CERR) regularly analyzes changes in demand in the real estate and car markets. A gradual increase in demand in these markets in January-June of this year. indicates a recovery in economic activity in Uzbekistan.

In June 2021, the demand of the population in the car market showed moderate growth, having increased by 13.7% compared to May of this year.

Compared to June 2020, this indicator increased by 12.9%, and growth compared to June 2019 was 29.6%.

During the reporting period, the number of registered and re-registered vehicles increased rapidly in all regions (except for Syrdarya region). The highest growth rates were recorded in Namangan (22.6%), Navoi (20.9%), Samarkand (18.8%), Ferghana (16.2%) and Tashkent (16.4%) regions.

The results of the analysis show that there is a significant correlation between the volume of car loans and the demand for cars. An increase in car loans by 10% leads to an increase in the number of registered and re-registered cars by 4%.

It should be noted that for January-May in the republic, car loans were issued to the population in the amount of 2.67 trillion soums, which is 40.5% more than in the same period in 2020. The highest growth rates were observed in Tashkent (growth - by 104.2% or up to 1.1 trillion soums), in Khorezm (by 66.5% or up to 155.7 billion soums), Bukhara (by 49, 8% or up to 152.2 billion soums), in Andijan (by 42.7% or up to 95.2 billion soums) regions and in the Republic of Karakalpakstan (by 56.3% or up to 173 billion soums).

In June 2021, 18.9 thousand new cars were registered. Of these, 1,171 (6.2%) are foreign cars.

The regions in which most of all foreign cars were sold were Tashkent (11.8% of new cars), Tashkent (5.7%), Samarkand (3%) and Khorezm (2.4%) regions.

Taking into account the fact that the Uzbek car market was growing in the previous year, the impact of the coronavirus can be considered minimal. The most severe quarantine phase in the republic fell on February and led to a 73.8% drop in vehicle sales, but already in June dealerships started working again, and in the second half of the year the market started to grow.

As the shortage of semiconductors (computer chips used in modern cars to control increasingly complex electronics) continued to slow shipments and increase wait times, nearly every brand continues to struggle to supply new vehicles, and there are many customers who have already placed an order and are waiting for their the car will be delivered.

Numerous dealers have a significant number of orders due to be delivered in the coming months, which indicates possible growth in the second half of the year.