The Russian market may keel over in 2014

The Russian car market reached a peak in 2012, with a volume of nearly three million light vehicles registered (2 935 000 units) but started to fall as of 2013 to 2 777 000 units, representing a decrease of 5.4% compared to the previous year.


As for 2014, the initial forecasts of a modest reboot of the Russian market didn't last long. The first four months already suggested a decline of 4% to 5% over the whole year, but today forecasts are much more pessimistic (between -10% and -20%). The automotive market reflects the Russian economy that is experiencing a period of uncertainty with a national growth close to zero in 2014, particularly due to geopolitical unrest between Ukraine and Russia.


The Chairman of AvtoVAZ, the largest carmaker in the country announced a possible decrease of 20% of the Russian market in 2014. According to the president of AvtoVAZ, 2014 and 2015 will be difficult for the automotive market in Russia.


Although the context and the stakes are different, this situation is similar to what happened recently in Iran, where economic sanctions significantly worsened an already fragile situation in the country. The Iranian car market fell by more than 30% in 2013 compared to 2012, a year that had already seen its market decline by nearly 40%.

 

14-19-5  


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