Russia: July sales dip 23% image

The country’s dwindling sales plummeted last month after going down 17% in June. The deliveries slump shows the customer base goes increasingly weary of the outcome of the Ukraine crisis.

The Association of European Businesses (AEB) lobby group reported that 180,767 new cars and light commercial vehicles were sold in Russia in July, which is a decline of around 53,600 units from July 2013. Seven-month sales stood at 1.4 million units, which is a drop of 9.9% from the same period last year.

“People are afraid to buy cars because they are uncertain about the future, while banks and insurance companies raise rates to protect themselves in a crisis,” said Svetlana Vinogradova, an executive at a major Russian car dealer.

“Unfortunately, the contraction of the automotive market continues, picking up speed in July. The overall trend is worrisome and unlikely to improve fundamentally any time soon,” added Joerg Schreiber, chairman of the AEB Automobile Manufacturers Committee.

The AEB already moved to downsize its prediction for the whole year from a modest 1.6% decline to a major 12% dip to just 2.45 million vehicles. The group did forecast the autumn months could see the traditional pick-up in demand, aided by the opening at the end of the month of the Moscow Motor Show.

Via Reuters