Ernst & Young: “Russian automobile market will resume its growth in 2016”

Ernst & Young: “Russian automobile market will resume its growth in 2016”

Izvestiya – Ernst & Young predicts a 5%-6% growth in Russian automobile market for the year 2016. The company foresees a shrinkage between 7%-10% for the following year, on the other hand.

Ernst & Young analysts share the view that the Russian market has not reached the saturation point yet. For example, in comparison with the 400 automobiles per 1000 people in East European countries, this ratio is 300/1000 in Russia.

Company analyst Andrei Tomishev has stated that the ratio of new car sales to the number of scrapped vehicles is also taken into the equation during the prediction process, besides automobile saturation. In the event of major financial and economic uncertainties, the consumers tend to hold on to their existing automobiles and wait for the right time for new purchases. In times of growth, the aforementioned parameter is: one scrapped vehicle for two new automobiles in Russia. Tomishev has stated that this ratio will be reached again in 2016.