Although falling for the fifth consecutive month, the 8% decline to 234,569 units recorded in July was an improvement over the 11% drop accounted in June.
Because the huge $2 trillion Russian economy is faltering, car sales are also suffering – this has prompted the Association of European Businesses (AEB) to recently slash its forecast for the full year to 2.8 million units, a 5% decrease.
Joerg Schreiber, chairman of the AEB’s automobile manufacturers’ committee, said market momentum was “not good in recent months.”
“There are indications however that the rate of decline has reached its peak in the second quarter, and that we can expect a gradual improvement to the point of stabilization in the coming months,” Schreiber said in a statement.
In the mean while, Russias economic output grew at the slowest pace since 2009, with only 2%. Still, Schreiber expects a recently announced government program to support loan-financed car purchases to get sales going up again.
Also, While Russia is expected to become sometimes this decade the biggest European market, in front fo Germany, major western manufacturers like General Motors, Ford, Renault and Fiat have rushed to invest heavily in the country.