Car production has declined by 21.7% in Russia in April 2016

Car production has declined by 21.7% in Russia in April 2016

RusAutoNews.Com – Passenger car production has fallen by 21.7% in Russia in April 2016, to 96,000 units according to Russian Federal Statistics Service (Rosstat) data.

Truck production, on the other hand, has remained almost unchanged in comparison with previous April, with 12,000 units.

Bus production was on the rise according to Rosstat data, by 7.6% to 3300 units.

As stated previously, 345,000 passenger automobiles have been manufactured in Russia during the January-April period, following a 25.1% year-on-year decline.

April, which is generally the most productive month for car dealers alongside December, has shown that the market is still in stagnation, told the president of the Association of Russian Car Dealers: Vladimir Mozhenkov. The customers have renewed their vehicles in the past few years, however now everyone waits to see how the economic situation will turn out, explains the executive director of Autostat: Sergei Udalov. New vehicles are bought for work purposes or in events of high depreciation, by people who benefit from state support programmes. “Since the beginning of the market shrinkage (year 2013 – Vedomosti), the customers have postponed their purchases, creating a pent-up demand. Vehicles are being bought by those who absolutely need to make the purchases” added the commercial director of Avtomir: Vitali Groshenkov.

According to Schreiber’s prediction in January, the Russian automobile market will have shrunk by 4.7% to 1.53 million vehicles, by the end of 2016. The baseline scenario of PwC forecasts a fall to 1.1 million vehicles, the lowest figure since the predictions of the company began in 2005.