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Car Sales Triple in Russia
May 03, 2007

Since the year 2002, the car sales have almost tripled in Russia and the favorable trend is likely to continue in the years to come, say industry experts.

Key development trends in the industry were discussed in the fifteenth International Automotive Conference held on 19 December 2006 in Moscow. It was concluded in this conference that car sales in Russia have trebled since 2002, and the country currently sells almost equal number of cars to that of United Kingdom. Russian and Foreign car sales total US$ 10 billion and US$ 20 billion, respectively.

In the year 2002, approximately 150,000 foreign cars were sold in the country. However in the year 2006, the market offered one-million more Russian and foreign cars.

In big cities such as St Petersburg & Moscow, the market is currently being saturated. As per Economic Development & Trade Ministry, about US$ 2 Billion would be invested in the production of foreign cars in Russia under a plan approved by the govt. Also, most foreign firms would be producing as well as selling more than 100,000 cars in 2007, as a result helping in further expansion of the market.

Car ownership in this country for more than ten years has increased by 3.6 times to reach 178 vehicles/1,000 inhabitants today. Experts expect that per year car sales would increase beyond 2.33 million by the year 2014 growing almost 1.5-fold from its position in year 2004.

Rising consumer interest in areas such as comfort, safety, and consumption of fuel is becoming quite apparent, & it has typically favored imported brands. In the year 2007, foreign brands' sales would total around 890,000 units, 47% up on previous year and would make up just above 51% of the market. Hyundai, Chevrolet, Toyota, Renault, and Ford would be the leading imported brands, accounting for nearly 45% of all new foreign car sales.

According to analysts at RNCOS, growth in imported vehicles' demand has raised much beyond expert predictions. In longer term, Russia will become a major market for production as well as sale of automobiles. As per a latest report on "
Russian Automotive Industry Forecast (2006-2011)" published by RNCOS, new cars' sales would reach nearly 2.3 million in the country by the year 2014. A number of global car suppliers will also make their presence felt in the country.

Related Market Research Reports:
Turkey Automobile Sector Forecast (2008-2012)
China Automobile Sector to 2010
Czech Republic Automobile Sector