RUSSIA: Russian car market swings to growth
Author: Dave Leggett | 13 May 2010
After a long period of decline that began with the international financial crisis of late 2008, Russia's light vehicle market notched up 20% year-on-year growth in April.
Growth is off a low base and was helped by the scrappage scheme introduced in March.
Sales of new passenger cars and LCVs in Russia decreased by 13% in the first four months.
The AEB Automobile Manufacturers Committee’s Chairman, David Thomas said: “April saw the first year on year growth of the Russian automotive market in a single month since October 2008. It was also the first full month of operation of the scrappage scheme and gives a strong indication of the impact that this programme is having particularly at the low cost end of the market.
“It is also encouraging that growth is not restricted to those brands eligible for the scrappage scheme though the significant variation in year on year movement between different brands shows that some volatility in the market remains. Overall an encouraging result that supports March's increase in the AMC's full year forecast.”
The AEB also said that non-domestic brands are also seeing a positive trend.
However, the organisation warned that 'despite some positive signs, it is still too early to speak of the steady sales growth tendency.'
The AEB said that light vehicle sales reached 163,299 units, 20% up on last year. In the first four months of the year sales reached 456,179 units, 13% down on the same period of last year.
AvtoVAZ brand Lada is emerging as a major beneficiary of the scrappage scheme with its low price cars. Its sales in April reached 52,449 units – 54% up on last year. Lada sales in the first four months of the year 124,081 units, 1% ahead of last year.
EMERGING MARKETS ANALYSIS: How long before Russia's car market bounces back? [includes data]
Sectors: Emerging markets, Vehicle manufacturers, Vehicle markets
Companies: Lada
View next/previous articles
Currently reading -
RUSSIA: Russian car market swings to growth
13 May 2010 -
Related company research
AVTOVAZ – analysis of the current situation and scenarios for the future
Besides the situation analysis of key functions of the company (manufacture, sales, export), the analysis of finance indexes of the AVTOVAZ group and also mutual relations with dealers and suppliers are included in the report....
OEM future car model programmes to 2020
This report is an essential reference if you need to have a knowledge of all key vehicle manufacturers' future car model launches around the world. It offers analysis and background information into OEMs' car model strategies and future plans in ten ...
Passenger car market in Russia
This report is a thorough and comprehensive analysis of the automotive passenger car market in Russia. The report includes detailed information of business results from each company in the Russian market over the past few years....
There are currently no comments on this article
Be the first to comment on this article