Dealers expect a 10% growth in the Russian automobile market in 2018

Dealers expect a 10% growth in the Russian automobile market in 2018

RNS – ROAD expects a 10% growth in the Russian automobile market in 2018 with the help of government support. The Association of Russian Automobile Dealers (ROAD) expects a 10% year-on-year growth in Russian new car and light commercial vehicle (LCV) market in 2018, as told by the president of ROAD and the board member of Block Rosno Group: Oleg Moseev.

“This year there will be an annual growth of 12-14%, depending on December results. For next year, on the other hand, a 10% growth in the Russian automobile market is estimated. The government support programmes will have a strong effect on the market. In the absence of these programmes, the sales figures would remain in 2017 levels” – said Moseev.

ROAD did not disclose any detailed price forecasts for new automobiles. The head of the association has related this to the requirements of the Federal Antimonopoly Service. In general, the Russian automobile market will follow the level of inflation. The rise will be higher in imported vehicles” – as explained by the ROAD director.

“The situation is complicated” – was Moseev’s comment, concerning the situation with the dealer networks and the possible closures of car centres. “The profitability of dealers has shrunk in recent years. The Russian automobile market volume is smaller, compared to the times when the dealer network was built, however, we hope there will be no heartbreaks. As a whole, the circumstances are pretty much the same throughout the country” – said Moseev.

According to Moseev, the banks now have an understanding of how to negotiate with the dealers about clear terms of restructuring, as opposed to selling empty car centre buildings and fixing losses”.

ROAD represents the interests of approximately 1 million dealer centres, which is equivalent to around 40% of the Russian new car and LCV market.