The Russian market is down by 2.4% in the first half of 2019
- The Russian automotive market had grown until 2018, when it grew by 12.8% to 1.8 million units (passenger cars + LCVs). It started to decline in February 2019, so that over the first half of 2019 as a whole, it fell by 2.4%. The main reason for this trend is lower demand, influenced by macroeconomic factors such as an increase in the cost of living following the VAT increase from 18% to 20% on 1st of January 2019. This downturn in the automotive market is also the result of a substantial reduction in government subsidies which had stimulated retail sales.
- In this context, the leader Renault-Nissan (-2.2%, to 302,000 sales) and Chinese automakers (-24.7%, to 28,000 units) are the most affected by the decline in the Russian market, without however any overall change in market rankings. The drop in Ford's sales (-18.1%) is understandable because the American manufacturer has announced its withdrawal from the Russian market, as has its compatriot GM.
- The brand that remains number one in the Russian market, Lada, whose manufacturer Avtovaz is owned by the Renault-Nissan group, continues to grow slightly over the year (+2.5%), while Renault brand sales fell by 13%.
- The Korean group Hyundai-Kia is in second place in the Russian market (+0.9% to 201,000 sales). The German group Volkswagen, which is in third place, grew more significantly (+5.6% to 103,000 sales). These three manufacturers account for 73% of the Russian market. SUVs now occupy 40% of the constantly growing Russian market, while sedans now occupy only 53% of this market.
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