The Civil Car Market Faces a Threat
45% of New Cars Sold in 2024 Are “Parallel Imports”
In the logistics world, the term “parallel import” has been around for quite a while. In simple terms, it means importing a product into a country without the official permission of the original manufacturer. In some economies, parallel imports are almost unavoidable. For instance, after recent global events, many countries imposed sanctions on Russia and left its market. So, what did Russian importers do? They opened offices in third countries and started bringing in high-demand goods through those intermediaries. In that way, parallel imports practically saved their consumer market.
But for countries with developing, regulated economies, the downsides—and even dangers—of parallel imports can’t be ignored. Let’s take a closer look at how this affects our country’s car market. Right now, the automobile sector is the hardest hit. The problem has become so serious that several well-known official car dealers and distributors are on the verge of shutting down.
Of course, “gray dealers”—as we often call them—aren’t new. They’ve always existed. But unlike official dealers, they don’t invest in building showrooms or service centers, don’t spend money on staff training, don’t create jobs, and don’t bother with marketing or advertising costs. In many cases, they import cars under private individuals’ names to hide their business activities and avoid paying taxes. The result? Cars brought in through parallel import end up on the market at much cheaper prices than those from official dealers.
You might think, “What’s wrong with that? People get cheaper cars, and the vehicle fleet gets renewed.” Unfortunately, this kind of “cheap deal” can end up costing consumers, the auto sector, and the economy a lot more in the long run:
- Cars imported through parallel channels may not meet local quality or safety standards.
- They might not be suited for our climate, fuel, or road conditions.
- Warranty and maintenance issues are inevitable—cars sold in other countries often have different parts, systems, or software that local service centers aren’t equipped to handle. This leads to violations of consumer rights and damages the brand’s reputation.
- It creates unfair competition. Struggling official dealers and distributors are forced to cut back on investments, marketing, and jobs—hurting both the sector and the overall business environment.
- Parallel imports can also violate intellectual property rights—like trademarks and patents—held by official distributors.
- If left unchecked, the growing scale of parallel imports could even affect international trade agreements, sparking economic disputes, tariff changes, or new restrictions.
On top of that, there have been frequent cases where “gray dealers” mislead customers about the cars they sell, delay deliveries after receiving advance payments, or even collect deposits for cars that don’t exist. Cars are a high-risk product, and for road safety reasons, their sales and maintenance should only be handled by businesses directly connected to the manufacturer—those with proper software, technical equipment, and trained professionals.
Many countries are taking steps to tackle this issue by researching and introducing new regulations for car imports. For example, in Kazakhstan, individuals are allowed to import one car per year for personal use—but only if it’s more than three years old. According to new rules introduced two months ago, only officially registered legal entities recognized as dealers or distributors can import newer cars (under three years old).
The good news is that in recent years, our government has been taking serious steps to renew the national car fleet and promote environmentally friendly transport. Measures such as age limits for used car imports, VAT exemptions for hybrid and electric vehicles, and the removal of customs duties on EVs have all paid off. As a result, the number of new cars imported rose from
19,740 in 2023 to 32,766 in 2024. The growth of electric vehicles was even more impressive: in 2022, only
486 EVs were imported, while in January–November 2024, that number reached
2,871.
It’s clear that in 2025, we’ll see more charging stations, better infrastructure, and an even faster rise in EV popularity. Still, it’s extremely important that all vehicles sold to the public come with official warranties, genuine spare parts, and professional service support.
As
AADA, we’re developing new proposals aimed at supporting the growth of a transparent, sustainable car market in our country. Our goal is to help bring modern, safe, and reliable vehicles to our roads, achieve higher safety standards, and support all national projects that aim to ensure a cleaner environment and a healthier next generation.