Russian car and LCV market has shrunk by 29.7% in June

Russian car and LCV market has shrunk by 29.7% in June

RusAutoNews.Com – According to Association of European Businesses (AEB) data, 140,161 new cars and light commercial vehicles have been sold in Russia in June (-29.7%). Thereby, the number of vehicles sold in the country within the first half of the year has reached 782,094 (-36.4%).

Joerg Schreiber, Chairman of the AEB Automobile Manufacturers Committee commented: “No reason to relax whatsoever, but it’s worth noticing that the pace of year-on-year volume drain in June is less dramatic than in the preceding months since February. Matters could be much worse, if not for two policy-driven factors supporting the market in the right direction: 1) the (ongoing) reduction in base interest rates, as the door opener for a successful reanimation of credit-financed demand, and 2) the continuing (and recently increased) government support to buyers of new cars, by ways of subsidizing interest rates or the renewal of older and very old cars.

Having said this, market sentiment for the remaining 6 months of the year remains muted. Based on a recent member poll, the AEB updates its full-year forecast for 2015 to 1.55 million passenger cars and light commercial vehicles, equivalent to a 36% reduction from 2014 actual result of 2.49 million”.

Detailed market figures: AEB Press-Release