Russian passenger car production increased by 2.1% in the first half of 2019
- Russian passenger car production increased by 2.1% in the first half of 2019, compared with 15.3% for the full year 2018. This slowdown in output growth is explained by the sharp slowdown in the Russian market, the main outlet for Russian production, since the country's exports remain practically non-existent.
- With a Russian market down by 2.4% in the first six months of 2019, compared to an increase of 12.8% in 2018, local production follows the same trend. However, local production is less affected than imports, which fell by 16% in the first six months of 2019; indeed, these imports have been falling steadily since 2013, on the recommendation of the Russian government, in response to the economic sanctions imposed against Russia by Western countries : -9.5% in 2013, -18.4% in 2014, -49.6% in 2015, -18.5% in 2016 and -11.3% in 2017.
- The Russian market is therefore increasingly dependent on Russian production and vice versa. As a result, if the decline in the Russian market continues, Russian production growth will tend increasingly towards zero. When the Russian market picks up again, the volume of Russian production will increase a little faster than the market growth, as imports will remain at a very low level, as will exports.
- In the first six months of 2019, Russia produced 780,000 cars, compared with 763,000 in the same period of the previous year. It should produce 1.5 million cars over the whole of 2019 (slightly less than in 2018).
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