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Rambler.- Car production has shrunk due to the quarantine and the seasonal holidays of automobile plants. The demand on cars, on the other hand, has risen after the quarantine as a result of the new government support programmes, as reported by RIA Novosti, citing a survey conducted by auto retailers.
Demand for new cars has increased by 7% year-on-year in July 2020. The dealers have now found themselves in an unusual situation, having almost nothing to sell. The volumes are expected to stabilise towards the end of the year.
“A deficit is experienced practically by all brands, in one model or the other. Lada is likely to suffer relatively less, although the Russian manufacturer will also face the problem in certain areas” - as told by the head of the ROAD Oleg Moseev in the survey.
As stated by other experts, deficits have been recorded for a number of Audi, BMW, Mercedes, Volkswagen, Hyundai and Cadillac models.
“The products are sold out. The factories remained idle for almost two months and now they are taking planned holidays. The cars purchased before the quarantine are now being sold. Brands with low warehouse and manufactured vehicle availability have found themselves in a situation, where increased demand can not be met within a specific period” - as stated by a car production expert.
Car prices continue rising in Russia, as reported by the Public News Service previously. The prices of foreign brand and Russian automobiles have gone up by 9% and 6% respectively within the first six months of 2020.
