Market growth will not start before 2017, according to Russian car dealers

Market growth will not start before 2017, according to Russian car dealers

RusAutoNews.Com – According to the survey conducted by EY and the Russian Association of Automobile Dealers (ROAD), with the participation of directors from 23 companies, 35% of the participants are of the opinion that the sales will start to improve from 2016 onwards. While 26% think that the recovery will start in 2017, the growth expectations of 39% go beyond 2017.

61% of car dealers predict a 40% decline in sales this year. 35% is of the opinion that the shrinkage rate will be in between 30-40%.

The responses to the survey also reveal that the car dealers are under serious amounts of debts and are whether in the process of or planning to start negotiations with their creditors. 57% of the dealers are in debt, ranging from level 3 to 5 according to EBITDA parameters. The debts are over level-5 for 22% of the dealers, on the other hand.