Blog: Focus going down a storm in Russia
Dave Leggett | 8 December 2005
I see the Ford Focus is going down so well in Russia that the local plant there cannot keep up with demand and some additional shipments from western Europe are required to get the waiting list down. The car market in Russia is going gangbusters as the economy booms and incomes rise on the back of high energy prices. Prospects for car demand in Russia look good as long as domestic demand stays buoyant and car companies are right to be going in for the long haul – the country has low per capita car ownership and can absorb plenty more cars.
I can’t help wondering what the response of the domestic makers to inexorably falling share will be, though. It is hard to see them being able to compete with international car brands such as Ford on product attributes – they compete now on being 30% cheaper to buy and much easier to maintain when they go wrong (which is frequently). So what will they do? And would Russia’s government stand by and watch them disappear? I don’t think so.
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