GAZ Group has improved its LCV market forecast

GAZ Group has improved its LCV market forecast


 

Finmarket.- GAZ Group has improved its prediction on the light commercial vehicles market, following the government decree, instructing the allocation of 10 billion rubles on the purchase of school buses and ambulances, as stated by the company chairman Vadim Sorokin.

“The first half of the year was very complicated. The light commercial vehicles market has shrunk by 7%. We predicted the market shrinkage to reach 11.5% by the end of the year. However, the government’s decision to implement a federal programme on the purchase of school buses and ambulances may hold the level of shrinkage at 7%” – as told by Sorokin to journalists.

According to Sorokin, GAZ Group has increased its market share in both 4×2 and 4×4 car segments, by around 2% and 1% respectively, despite the dire market circumstances.

Sorokin has reminded that the company has sold approximately 110,000 light commercial vehicles in 2018.

As reported, the Prime Minister Dmitry Medvedev has signed a decree on the allocation of 5 billion rubles to the Ministry of Industry and Commerce from the reserve fund at the beginning of August, for the purchase of school buses and ambulances for the citizens of the Russian Federation, from domestic car manufacturers.

Minimum amounts of 1200 ambulances and 2200 school buses are planned to be purchased with the allocated 10 billion rubles.