Executive says Russian car sales to drop 20% this year image

The new chief executive of AvtoVAZ, Bo Andersson, forecasts for 2014 a serious drop in overall sales on the Russian market, which could slump, according to his prediction by as much as 20%.

That would compare to last year’s slump of just 6%, according to data coming from the Moscow based Association of European Businesses. The executive made his predictions during an interview taken on the sidelines of the St. Petersburg International Economic Forum.

According to Andersson, the political tension surrounding Russia’s annexation of Crimea and the sanctions set up against companies, officials and businessmen related to President Vladimir Putin don’t count among the factors contributing to the fall.

So far, according to the AEB, the overall Russian car market in the first four months went down just 4% to 829,046 units, while AvtoVAZ’s deliveries decreased by 15% in the January-April period to 128,633 vehicles.

The CEO says his company – which is now majority controlled by the Renault-Nissan alliance – for the full year would drop less than his predicted 20%, in the range of 10-15%, allowing it to capture more market share by 2016. The executive also predicts two “tough” years for the overall car market.

Via Automotive News Europe