Russia’s car market faces two years with little prospect of significant recovery according to the head of Ford’s operations there.
Russia’s automotive sector is reeling from sharply slower car sales on the back of an economic slowdown that has been further aggravated by the sanctions fallout from the crisis in Ukraine.
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Ford Sollers boss Ted Cannis’ latest remarks echo those earlier this year from Bo Andersson, CEO of AvtoVAZ.
“There is no sign that things will rapidly improve in the next two years,” said Cannis, speaking to Reuters.
“To improve the car business, we need interest rates to come down, we would need more certainty in the business climate and the customer climate,” Cannis said in an interview at the Reuters Russia Investment Summit.
Cannis also told Reuters that he did not expect Russia’s government to take any measures that would hurt foreign carmakers who produce cars locally, such as an import ban on car parts.
He also said that the carmakers with the highest localisation rate, such as AvtoVAZ were the main winners in the current situation that has made imported parts more expensive.
