Car manufacturers are downsizing their model ranges in Russia

Car manufacturers are downsizing their model ranges in Russia

Autostat – According to Autostat analysis, the brand and model variety is on the decline in 2015, alongside the shrinkage in the market (34% in eight months).

The statistics created by the Association of European Businesses (AEB) state that 388 models belonging to 56 brands were on the Russian market in 2014. In accordance with the same source, the brand number has gone down to 49 and the model number to 366 in 2015 (-6%). In August there were only 306 models on the market (-20%).

While brands such as ZAZ, Bogdan, TAGAZ, Dodge and Luxgen have left the market completely, brands the likes of Ferrari and Maserati have given up supplying AEB with statistics. Opel, Chevrolet, Seat and Alfa Romeo are amongst the brands, which sell vehicles left in stock.

The analysts draw attention to the fact that the brands are currently in the process of optimising their model ranges for the Russian market. Some models are being replaced by new ones, others being discontinued. These are the models not being demanded by Russian consumers.

Suzuki, for example, has ended the supply of Kizashi, Splash and Swift models. Mazda2 and Mazda5 models are not being sold. Renault, on the other hand, has stopped supplying Latitude, Scenic and Clio. Accord, Civic and Pilot are the Honda models with zero sales figures. The company has shifted to production on order regime, which is expected to reduce the sales volumes further down.

The car manufacturers put emphasis on bestselling products, rather than model variety. The best-sold 15 models make up 50% of the Russian market. The remaining half is formed of over 350 models.

Autostat analysts state that the process of model optimisation has started recently in Russia, but will continue actively. The analysts explain this trend with the shrinkage in the market and the devaluation of ruble. Supply of many models is not profitable under current conditions. As assessed by Autostat, the number of models on the market will remain below 300 next year.