Renault-Nissan CEO Sees Growth in Russian Auto Market image

Renault-Nissan CEO Carlos Ghosn said that Russian market will rebound, and plans to get 40% of it with AvtoVAZ’s help.

A report from the Association of European Business shows that auto sales in Russia have dropped for four consecutive months, as the nation’s $2 trillion economy has faltered. The AEB recently announced it has reduced its full-year target to a fall of 5%, but Ghosn remains optimistic regarding growth in this market, relying on low car ownership in Russia. Vehicle ownership in Russia is less than 300 cars per 1,000 people, compared with 500 per 1,000 people in Europe.

“I don’t doubt for a second that car ownership in Russia should be not less than in Portugal, Spain and Italy,” said Ghosn. “There may be quarterly or even yearly falls in sales, but on the whole I have no doubt that the trend is upward.”

In 2012 the Renault-Nissan alliance signed a deal to take control of Lada-maker AvtoVAZ by mid-2014, a continuation of the 4-year partnership it had with the Russian automaker. Ghosn did not offer a sales target for the Russian market, but said he wants Renault, Nissan and AvtoVAZ to have 40% of this market, an increase from the 32% it had last year.

Source: Reuters