Russian ministry of economic development foresees a shrinkage of 18-20% in car production in Russia in 2015

Russian ministry of economic development foresees a shrinkage of 18-20% in car production in Russia in 2015

Prime – A Russian ministry of economic development report predicts a shrinkage between 18-20% in the automotive sector of the country, for 2015.

The minister of industry and commerce Denis Manturov had stated 10% expected shrinkage in automobile market, at the beginning of the year. The sectoral players and analysts, on the other hand, are more pessimistic. The majority is of the opinion that the market will only reach around 1.5 million vehicles by the year-end, which is equivalent to a 40% year-on-year shrinkage.

The ministry of development report draws attention to the increase in exports, as a factor which may slow down the parallel shrinkage in production, in the event of steep decline in the domestic market (AVTOVAZ +9.4%, KAMAZ +20%, AZ Ural +34.7%).

According to the ministry data, 520,200 automobiles have been manufactured in the country, since the turn of the year.