Russian car dealers: “Our western partners are planning to reduce sales by 30%”

Russian car dealers: “Our western partners are planning to reduce sales by 30%”

Kommersant – The sectoral experts predict that a third of Russian car dealers may face bankruptcy next year. Officials from Russian Car Dealers Union have told Kommersant FM that some players will have to leave the market, due to the shrinkage in the market. According to the dealers, the sector is in need of government subsidies.

The vice president of the union: Andrei Patrenko has said the following: “The volatility of ruble is very strong. Prices of the components will rise, as well as the automobiles. Our western partners are planning to reduce sales by 30%. This is in fact the most pessimistic prediction, in the absence of government subsidies. A support, in the form of induced credit, is an option for example.”

Vector Market general director: Dmitriy Chumakov shares the prediction that the number of dealers will decline, however doubts that the decline will be as high as 30%. According to Chumakov, more probably the dealers in relatively better positions will continue their trade by acquiring the less fortunate ones.

AEB predicts a 12% shrinkage rate for Russian automobile market this year, with 2.5 million vehicles.