Information on New Foreign Car Imports Submitted to RA Commission on

INFORMATION ON NEW FOREIGN CAR IMPORTS SUBMITTED TO RA COMMISSION ON
ECONOMIC COMPETITION PROTECTION DOES NOT REFLECT REAL MARKET SITUATION

YEREVAN, AUGUST 7, NOYAN TAPAN. At the August 7 sitting, the RA State
Commission on Protection of Economic Competition approved the results
of studies in several commodity markets. According to these studies,
in 2005, eleven economic entities were operating on the new Russian
passenger car market, with Armenia-Lada and Carcomavto accounting
for the largest share of the market.

4,378 new Russian vehicles and 141 used ones were sold in the
market. In 2005, 43 companies were operating on the new "far
abroad" passenger car market, with Muran, Megna, Carcomavto, Fora,
Armenia-Lada, Eurovagen, Euromotors, Avangard Motors companies
accounting for a large share of sales. According to the information
of the State Customs Committee, last year 16,471 passenger cars
were imported into Armenia, 5,524 of which were imported by economic
entities and 10,947 – by natural persons. The comparison of the data
received from the State Customs Committee and economic entities showed
that in 2005, only 552 new foreign cars were imported into Armenia by
economic entities. The commission called these facts in question as
it is possible that the passenger cars imported by economic entities
at the request of natural persons cross the border as belonging to
natural persons rather than to economic entities – importers.

The provisions of the RA Law on Protection of Economic Competition
do not apply to the economic activity of natural persons, while,
according to the commission, the information about imports of new
foreign cars does not reflect the real situation on the market. So,
under the commission’s decision, additional studies will be conducted
on the given market. In the commission’s estimation, Armenia-Lada and
Carcomavto represent an economic entity – a group of persons on the
new Russian passenger car market and account for about 95% of the
market. Muran, Megna, Carcomavto, Fora and Armenia-Lada companies
are operating as a group of persons in the new "far abroad" car
market. Out of these two groups of persons, the former was recorded in
the register of entities with a dominating position. The commission
also studied the market of electric lamps. The studies revealed
that 128 economic entities were operating in the commodity market
"Domestic Electric Lamps" last year. Grand Sun (47.7%) and Carlita
(28%) companies were leading ones in terms of market sales. By the
commission’s decision, Grand Sun was recorded as in the register of
economic entities as one with a dominating position. The commission
made a decision, according to which Armenian Railway CJSC that has no
competitor was also qualified as a company with a dominating position
in the reailway service sector.

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