Russia’s Association of European Businesses (AEB), says July sales of new cars and light commercial vehicles dropped 22.9%, noting the overall trend is “worrisome.”
The AEB data confirms months of Russian automotive contraction as massive political uncertainty triggered by the continuing crisis in Eastern Ukraine and the imposition of sanctions by both the West and Moscow on each other ratchets up.
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“Net was a 23% decline YOY for July, so the pace of decline is picking up from the 17% decline in June YOY,” Ernst & Young CIS automotive sector leader, William King, told just-auto.
“Not a great surprise and it would not shock me if the overall year ended up closer to 20%-25% decline to under 2m vehicles.”
July’s sharp fall equates to 53,598 fewer sold units and amounted to only 180,767 cars, according to the AEB Automobile Manufacturers Committee (AEB AMC).
From January to July this year new car and LCV sales declined by 9,9% or 154,864 items in comparison to the same period of the previous year.
So far in 2014, 1,410,606 cars have been sold.
“Unfortunately, the contraction of the automotive market continues, picking up speed in July,” said AEB AMC chairman, Joerg Schreiber. “The overall trend is worrisome and unlikely to improve fundamentally any time soon.
“Of course, the Moscow Motor Show set to open at the end of August should have a stimulating effect on car purchases, especially in the usually stronger autumn season. In any case, this is how it normally works.
“But what has been normal this year so far?”
