Russia’s powerful automotive recovery continued last month with sales of new passenger cars and LCVs increasing 8.2% last month.
Among the top ten bestselling models so far, all models are locally produced.
October saw sales of new cars and light commercial vehicles in Russia rising 12,097 sold units, amounting to 160,425 cars, according to the AEB Automobile Manufacturers Committee (AEB AMC).
From January to October this year, 1,457,857 cars and LCVs were sold, 14.1% ahead of the same period last year.
“Moving into the final quarter of the year, Russian car sales continue to demonstrate robust momentum,” said AEB AMC chairman, Joerg Schreiber.
“This is a pleasant fact, but not a surprise considering the tailwind the whole retail sector is receiving during the countdown for a change in VAT taxation. While for now the market is doing fine, there is a growing concern among its participants about the continuity of retail demand from January, 2019.”
The good news follows sustained monthly rises in Russian sales following a catastrophic four-year period which saw numbers tumble rapidly due to several external factors bearing on the domestic market.
The increase may be due to the consistently high oil price this year, which has seen rates of US$70 plus. Some analysts estimate break-even for the Russian economy to be around US$48 as the country is so uniquely reliant on its vast reserves of oil and gas.