Hummer Sales in Russia Jump 111% in May Despite Market Slump
Amid a sharp downturn in Russia’s car market, Hummer was the only brand to record a month-on-month sales increase in May 2009, selling 129 vehicles.
Hummer was the only car brand in Russia to post a month-on-month sales increase in May 2009, with registrations up 111% compared to April. The American SUV maker sold 129 vehicles for the month, according to figures reported by Automotive News. This came as most other brands saw their Russian sales collapse during the global recession.
Russian market in sharp decline
The overall Russian car market was in steep decline in the first half of 2009. Year-to-date sales through May were down 47%, reversing the optimism that had surrounded Russia as a growth market before the financial crisis. The downturn hit nearly every manufacturer. Only six brands, including Hummer, Cadillac, Citroën, Infiniti, Seat and Volkswagen, managed to avoid a year-on-year drop in sales for the period.
Hummer’s performance stands out in this context. Its 614 units sold in the first five months of 2009 represented an 86.6% increase on the same period a year earlier. By contrast, most brands suffered double-digit declines. The May surge to 129 vehicles, while modest in absolute terms, was enough to make Hummer the only marque in Russia to post a positive sales trend that month.
US sales and global context
Hummer’s fortunes in Russia contrasted sharply with its performance in its home market. In the United States, Hummer sales for the first five months of 2009 stood at 5,114 units, down 63.7% on the previous year. The brand’s global future was also in question during this period, as General Motors sought to sell Hummer to Chinese industrial group Sichuan Tengzhong. The proposed deal was part of GM’s restructuring efforts during the financial crisis.
Before the downturn, Russia had been seen as a promising growth market for large SUVs and premium brands. The collapse in demand in 2009 put those expectations on hold, but Hummer’s spike in sales suggested a niche remained for American off-roaders despite the wider slump. Other brands, including Volkswagen and Infiniti, also managed to avoid declines, but none matched Hummer’s month-on-month percentage growth in May.
Comparison with European markets
Hummer’s unusual result in Russia did not signal a broader recovery for the brand or for the market. The spike in May sales was a rare bright spot in an otherwise bleak period for both Hummer and Russian dealers.
