Experts have predicted a shrinkage between 20-50% in the Russian car market due to the pandemic

Experts have predicted a shrinkage between 20-50% in the Russian car market due to the pandemic


 

RNS.- 42% of Russian citizens have given up the idea of buying a car during the pandemic, in order to cut expenditures, according to a survey of Boston Consulting Group (BCG) consulting company.

“42% of Russian clients are planning to cut expenditures, staying away from car purchases” – as stated by BCG, quoting the results of the Russian consumer behaviour survey in 2020.

Russian citizens plan to cut expenditures on automobiles, which is amongst the top-three spending categories in the country, to save money under the conditions of the Coronavirus, as stated by BCG

On the other hand, 21% of clients plan to spend more on automobiles, as emphasised by the company.

“Some people will be able to spend more money on automobiles, due to the devaluation of the ruble in 2020, as consumers can still buy cars at old prices. This group is expected to shrink down to 5-6% when the dealers increase car prices, as happened after the 2014 devaluation of the ruble” – as stated in the survey.

BCG has added that there’s an expectation of falling demand amongst the car dealers, for the April-May period of 2020.