According to new estimates from PricewaterhouseCoopers, the Russian new-car market is expected to slump severely in 2014, with a fall seen at 8 to 12%.
PwC has moved to downgrade its previous prediction for the country’s auto market, after in January it said the fall would only be of around 3%. The move – echoed by other analysts and Russia’s car industry association – shows how rapid the situation is deteriorating in the country. While just two years ago it was mulled as the only market that could claim European supremacy from Germany in terms of auto sales, a slowdown in the economy triggered a fall in demand in 2013. The political situation surrounding the Ukrainian crisis has added strains to the ailing market, as the Western nations and North America imposed economic sanctions.
According to Sergei Litvinenko, a senior manager in the firm’s automotive practice in Russia, PwC now sees car sales in Russia amounting to around 2.3 million to 2.4 million autos. In the first six months of the year, deliveries were down 7% to 1.2 million vehicles. The Moscow-based Association of European Businesses (AEB) also predicted a 12% decline for the full year. In 2013, the Russian new-car market fell 5.5% to 2.6 million units. Auto industry profit was also down 3% to $69 billion.
Via Automotive News Europe