Ford, Chevrolet, Renault and VW saw their sales plunge in Russia, were auto sales dropped 11% in June for the fourth consecutive month.
Sales of Russia’s best-selling brand, the Lada, dropped 17% in June compared with the same month last year, according to the Moscow-based Association of European Businesses (AEB). As the market’s $2-trillion economy has faltered, dramatically affecting auto sales in the country. This has also made AEB cut its full-year forecast to 5%.
“It is obvious that, as a whole, the Russian car market is not in the best of shape at this point,” Joerg Schreiber, chairman of the AEB Automobile Manufacturers Committee, said in a statement.
Sales in June dropped 11% to 241,346 units, after a fall of 12% in May, 8% in April and 4% in March. Nissan was the worst affected among all major automakers, with sales down 34%, followed by Chevrolet with 28%, Ford 24%, Renault 5% and VW 7%. Western automakers, such as Fiat, Renault, Ford and GM have made heavy investments in Russia, where sales have dropped 6% year-to-date to 1.33 million units.
“The question now is whether the market can do better in the second half of the year,” said Schreiber. “Personally I believe it can and the chances for that have increased with the announcement of government plans to subsidize credit-backed vehicle purchases.”