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Georgian Representations of Toyota and Kia Arguing over Public Tenders

Large funds are allocated from the state budget every year for the purchase  of cars. According to the NGO Transparency International – Georgia, from November 2012 to July 2014 about  GEL 26 million was spent for rhis purpose.

Auto importers comment on holding tenders – both large and small.

In particular, the major importers Tegeta Motors and Toyota Center  say that  the state has reduced the costs for  buying and maintaining vehicles.

According to  Director General of Toyota Center Irakli Gurchiani, public procurement standards have declined to such an extent that only manufacturers such as KIA and Hyundai can win them. Big brands producing quality cars, such as Toyota, have no chance.

The non-governmental organization Transparency International states the same – in particular, the results of the study conducted in July 2013  show that  specific requirements of the tenders create unequal competitive conditions.

“We found several cases when it was clearly evident that the agreement was reached informally before the announcement of the tender, as the purchasing conditions were almost entirely copied from the website of one of the dealers. In addition, the price has been specified that only one company participated in the tender, “- say in the NGO.

KIA Motors doesn’t agree with these charges. According to the head of Sales Department Nato Shubitidze, tender conditions are not designed for  any particular company, and their goal is to save money.

There are  specific conditions, such for example as an engine size,  a number of pillows of safety, the size of a vehicle, etc. These cars can be found in almost any brand, so it cannot be said that the tenders are held for the benefit of any company. The problem of  Toyota is that there is a limit price that is lower than suits them. The government does not buy cars at a price higher than maximum limit. Toyota sells  more expensive cars, respectively, they cannot fit into this framework. As for the competition, the tendering conditions are quite competitive. They are attended by such brands as Mitsubishi, Renault, Hyundai, and so on, and not just KIA Motors. Besides, Toyota has another problem – the lack of a 5-year factory warranty which   requires the state. And we have such guarantees, “- the representative of KIA Motors notes.