Russia: April sales at lowest level in ten years image

New car deliveries across the battered Russian market have plunged 42 percent last month, for the lowest April level in a decade, with the country’s economy still impacted by the Western sanctions, global oil glut and weakening local currency.

According to the Moscow-based Association of European Businesses, sales of cars and light commercial vehicles dropped 42 percent year-over-year to 132,456 units in April, with four month deliveries also down sharply by 38 percent from the level seen last year to 516,135 autos. Last month’s sales slid even below the previous monthly low registered in 2009 during the financial crisis, said Joerg Schreiber, the chairman of the AEB automobile manufacturers committee, commenting the results in an official statement. The official further said the AEB forecasts a “gradual flattening of the negative trend in the coming months,” mainly thanks to government intervention through measures designed to alleviate the loss-making automakers. The official sales forecast for the year puts sales down 24 percent from the level seen last year.

As far as the carmakers are concerned, all of them had major sales drops – from the market leader Lada that plunged 38 percent to second-placed Kia’s fall of 22 percent and third-placed Hyundai slide of 14 percent. Renault, the fourth-best selling brand in Russia saw an even heftier drop of 41 percent, while European peers Volkswagen and Opel were down 47 and 59 percent, respectively. Asian brands such as Toyota or Nissan were not able to escape the drought, dropping 54 percent and 44 percent, respectively.

Via Automotive News Europe