Russian Car Sales Down 10% in 2016
Economy, Auto

Russian Car Sales Down 10% in 2016

Russia's once-booming automotive market is seen falling 10% in 2016, as car sales tumble for the fourth consecutive year, said the head of the country's largest dealership group.
Rolf dealership head Tatyana Lukovetskaya said sales could fall to 1.3 million this year, less than half of the nearly 3 million vehicles sold in Russia in 2012, as the country's deepening economic downturn further erodes consumer spending, Reuters reported.
"If you used to change your car every three years, now you will change it every five years," Lukovetskaya said.
After a decade of annual sales growth in excess of 10%, Russia's car industry has become one of the most high-profile victims of the country's economic crisis. This has been fueled by lower prices of oil, its main export, and western sanctions over Moscow's actions in Ukraine.
Car sales plunged 36% to 1.6 million vehicles in 2015, according to the Association of European Businesses lobby group, a far cry from the 2012-13 peak when during some months Russia ranked as Europe's largest car market by sales.
Sales fell 17% in the first quarter of 2016, though the AEB is less pessimistic than Lukovetskaya, saying it sees sales falling just 4.7% this year.
Lukovetskaya said the less severe decline did not mean the market was bottoming out, as forecast by some analysts.
"What is the bottom? When will it end?" she said. "When we understand that the economy has begun to improve, then we will see we are at the bottom. But right now the economy is not recovering."

Short URL : http://goo.gl/QHPhNj
  1. http://goo.gl/jaxNc9
  • http://goo.gl/yu2RDQ
  • http://goo.gl/Ms4SZc
  • http://goo.gl/E4xv2N
  • http://goo.gl/S3HE3s

You can also read ...

IMF Pledges Continued Work With Central Bank of Iran
More than a week after US Treasury Department blacklisted...
Billet Export Prices Increase
Iranian export steel billet prices picked up in the week ended...
The Sartak-Pishta border gate between the Kurdistan Regional...
More Grain Shipments to Iran
For transport and logistics industry experts, spring is always...
Foiling US Sanctions on Iran: The EU Blocking Regulation
The EU has announced its intention to protect European...
The GDPR clarifies and strengthens existing individual privacy rights.
New European privacy regulations that were to go into effect...
Majlis Forex Options Still on Agenda
Chairman of Majlis Economic Commission said on Tuesday a...
Flooding Inflicts Heavy Damage on Roads
Recent heavy rainfall and flooding in Iran have inflicted...