Russian new-car sales plunge 43% in March as economy contracts
MOSCOW (Bloomberg) -- Russian new-vehicle sales dropped 43% last month as the economy falls into recession.
Sales of automobiles and light-commercial vehicles decreased to 139,850 in March from 243,332 a year before, the Association of European Companies in Russian Federation said Wednesday in a statement.
Through March, revenue dropped 36% to 383,691.
Car makers in Russian Federation are enduring as this past year's ruble fall increases the price of imported components as well as the nation's economic woes control consumer demand.
General Motors Co. will stagnate a plant in St. Petersburg this year and arrest sales of its Opel brand and most Chevy models. Other auto makers, including Volkswagen and PSA/Peugeot Citroen, want to reduce jobs in the united states.
"What we're finding now in the revenue data is the extended-foreseen 'problem' in customer demand, resulting from the pull-ahead of automobile purchases by the end of a year ago, and compounded by significant cost inflation in the present year," Joerg Schreiber, chairperson of the AEB Automobile Manufacturers Committee, stated in the declaration. "The scenario will stabilize, but we aren't at this stage yet."
The AEB has forecast that revenue will fall 24 percent in 2013, while accounting firm PricewaterhouseCoopers anticipates a lower ranging from 25% to 3-5%.
Volkswagen, General Motors, Ford and PSA poorly strike
Most important automakers endured huge sales falls last month.
Sales at AvtoVAZ Renault Nissan, Russia's greatest vehicle group, dropped 31% in March, while quantity at Vw, the nation's second-largest vehicle group, was down 4-8%. The fall were less intense in the Marketplace 's No. 3 participant, Hyundai, whose revenue dropped 15%, but fourth-rated Toyota Team offered 27% fewer vehicles than the year before. Rounding out the top 5, Kia's quantity slumped 32% last month.
Both Gm and Ford were poorly hit as revenue plummeted 76% and 7 3% respectively. PSA/Peugeot Citroen quantity dropped 79 percent.
Download PDF, above correct, for March and 3-month Russia revenue by auto-maker and business name.
To combat the decrease in the market, Russia's government has begun to subsidize auto loans, expanded a scrappage system and enabled people to rent cars. The authorities measures will result from the contraction in auto sales, that might fall 24 percent in 2013 instead of 50 per cent without assistance, Business Minister Denis Manturov said in March.The economic system of the planet 's largest energy exporter is forecast to shrink 3% in 2013, damage by US and European sanctions over Ukraine and a drop-off in oil costs to to 6-year lows, according to authorities predictions. Retail revenue might drop 8.2%, and yearly inflation may possibly finish the year at 12.2%, after hastening to 16.9% in March, the highest in 13 years.
Automotive News Europe contributed to this report
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