Foreign car brands aren’t escaping the slowdown in Russia’s car market that took hold last month.
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In November, new foreign makes’ sales in Russia totaled 136,554 units, some 19% less than October and 15% less than in November 2007, the Automobile Manufacturers Committee of the Association of European Businesses is quoted by the daily Vedomosti as saying. This was despite discounts of up to 20% off retail prices.
Russia’s car market has stalled as credit availability has dried up.
Most popular foreign brands – many assembled in Russia – are showing sales declines. One exception, for the moment, is Toyota where local output of the Camry is ramping up this year.
Many manufacturers already produce in Russia. Hyundai, which does have a Russian plant, was among the worst hit, with sales down 36% on a year ago.
Russia has not escaped the global credit crisis. Access to car loans has been reduced, stifling demand.
Nevertheless, In the first 11 months of 2008, foreign brand car sales were up 31% year on year.
The government will possibly subsidise interest rates on loans that car producers pay to banks, Russia’s President Dimitry Medvedev has said.
State assistance for Russian carmakers was written into a USD200bn state aid package, including a provision to lower interest rates on loans taken by car manufacturers.
Early this month, the government also sharply raised import tariffs on second-hand foreign cars, a protectionist measure for which the industry has long lobbied.
