The Government expects a shrinkage between 25-30% in Russian car market

The Government expects a shrinkage between 25-30% in Russian car market


Autostat.- The Russian Ministry of Industry and Commerce forecasts a decline of 25-30% in Russian car market in 2020, as told by minister Denis Manturov during an interview with Izvestiya newspaper. The minister has added that an additional amount of more than 25 billion rubles have been allocated for the stimulation of consumer demand, taking into account the targeted purchases of over 35 billion rubles.

As one may remember, car and light commercial vehicle sales have fallen by 16.9% to 880,198 units in Russia within the first eight months of 2020, according to the AEB data. The current prediction of AEB states that the Russian car market will shrink by 23.9% by the end of 2020, amounting to 1,339,000 units, on condition of the continuation of the state support on consumer demand stimulation and the prevention of the second wave of the Coronavirus pandemic.

“The situation is better in production, due to the recovery in the demand for trucks, LCVs and buses. Bus production is almost 100% loaded until the end of the year, which is the case in the production sites of Kamaz and GAZ Group” – as emphasised by Manturov.

According to Rosstat data, 706,000 cars have rolled off Russian conveyors within the first eight months of 2020 (-30.1%). 76,900 trucks have been manufactured within the January-August period of the year, which is equivalent to a 19% year-on-year shrinkage.

As stated by the Russian Deputy Minister of Industry and Commerce Alexander Morozov previously, the preferential state programmes on demand stimulation for Russian production automobiles have been extended to 2021. According to this year’s figures, there are plans to manufacture more than 200,000 automobiles in Russia.

As reported earlier, the Russian car market has risen to the second place in Europe in August 2020.