Europe: Russia’s auto market forecasted to drop 36 percent this year image

According to the Moscow-based Association of European Businesses (AEB) lobby group, new vehicle sales are forecasted to plummet 36 percent this year, as the prediction was modified to reflect the latest market developments.

After for years posting double digit sales increases, leading many industry experts and executives to believe Russia could overtake Germany as the continent’s largest market, Russian sales started diving last year because of the plummeting economy that was impacted by the political and economical crisis stemming from the Ukraine intervention and the lower global oil prices. According to the AEB, the previous forecast, which saw a 25 percent to 1.89 million units for the year was actually too optimistic, with new car deliveries now seen lagging by 36 percent to 1.55 million autos from last year’s 2.49 million vehicle figure.

Last month, deliveries of new passenger cars and light commercial vehicles slid 30 percent from the same period last year in the country, to 140,161units. That followed an even steeper drop of 38 percent in May and of 42 percent in April. “Market sentiment for the remaining six months of the year remains muted,” commented in the statement Joerg Schreiber, chairman of the AEB Automobile Manufacturers Committee. The AEB said in the release that after the recent pace of sales, first six month delivery data showed a decline of 36 percent to 782,094 vehicles.

Via Automotive News Europe