Daimler: “Russian vehicle market will continue to shrink due to the sanctions and recession”

Daimler: “Russian vehicle market will continue to shrink due to the sanctions and recession”

RusAutoNews.Com – Daimler is not optimistic about the Russian economy and automotive. According to Reuters, the German car manufacturer Daimler has published in its latest report the forecast that the Russian vehicle market will continue to shrink, due to the economic problems in the country, which is on the threshold of recession. According to the company, the escalation of the conflict between Russia and the Western countries, resulting in more sanctions against Russia, which may trigger counter-measures by the country in return, is the biggest risk in the world economy.

On the other hand, Daimler predicts that despite the ongoing shrinkage in the Russian vehicle market as a whole, the premium segment automobile sales will continue to rise.

Daimler, who holds 15% share of the Russian truck manufacturer: KamAZ with the European Bank for Reconstruction and Development (EBRD), has made as loss of €2 million from this partnership, during the first half of 2014. The company had made a profit of €7 million from KamAZ, during the same period of 2013.

Mercedes-Benz truck sales have fallen by 23% in Russia in 2013, with 3849 vehicles. However, the number of vehicles manufactured by the company in Russia has increased by 13.5%, reaching 2609 vehicles. The company has forecasted in its report that the truck sales in Russia will continue declining this year.

Russian heavy tonnage truck market has shrunk by 25%, with 88,000 vehicles last year. VTB Kapital analyst: Vladimir Bespalov, who was consulted by Reuters, has stated that the figure will decline by 9% this year, down to 80,000 vehicles. Bespalov draws attention to the fact that the heavy tonnage truck market is directly linked to the investment activities in the country. The market may recover by means of new infrastructure projects.

Russia is planning to extend several important railway lines and construct a new highway surrounding Moscow and a new bridge on Kerch Strait.