SEAT is leaving the Russian market

SEAT is leaving the Russian market

RusAutoNews.Com – According to Kommersant newspaper, due to the shrinkage in the market and the crisis environment, following Dodge, SEAT has also decided to end its sales in Russia. The company has shown the falling demand on budget-friendly automobiles and the fluctuation in exchange rates as the reasons behind the decision. The sectoral experts draw attention to the low market share of SEAT in Russia (0.1%) and the non-profitability of imports due to devaluation. Other brands, making production outside Russia, may take similar decisions, accordingly.

In contrast with the year-on-year sales increase of 35% achieved in Russia in 2013 with 3400 vehicles, SEAT only managed to sell 1300 vehicles during the January-October period of 2014 (-57%).

The experts have told Kommersant newspaper that car imports are becoming less and less profitable, as a result of rising interest rates on credits and the depreciation of the rouble. The brands with conservative import policies and weak distribution networks that manufacture outside Russia are under threat. The luxury vehicles segment, which is less sensitive to price changes, is an exception. The sales of the brands in this segment are on the rise.

Tags: Car market, SEAT