Russian car sales continue to collapse image

The Russian auto market is in a continuous downward spiral, with sales falling 42.7 percent last month from a year earlier, after a 38,5 percent decrease in October.

From the start of the year, the automotive market in Russia is on a fast descending slope and there is no hope for better prospect so far. Two months ago, the sales dropped by 38,5 percent compared to the same period of last year, after a 29 percent decline in September. In the first ten months, 1.32 million cars were sold, a 34 percent decrease and the collapse is not going to be stopped so easily. November sales of new cars and light commercial vehicles dropped 42.7 percent from a year earlier, the Association of European Businesses in Moscow said in a statement. For 11 months the demand keeps going down, as the ruble’s weakening has pushed the inflation up. Another important factor in the high pace in the market’s decline is the suspension of the government scrappage & trade-in program, originally introduced in September last year.

“One year ago, the ruble was plummeting and customers were storming dealer showrooms to put their money to use before car prices caught up with the new exchange rate reality,” Joerg Schreiber, chairman of the AEB automobile manufacturers committee, said in the statement. “None of this happened in November this year, which explains the relative deterioration in the year-on-year performance of the market. Expectations regarding December are rather modest, especially in comparison with the record sales achieved last year at the peak of a short-lived sales boom,” Schreiber said.

Via Bloomberg