The Russian car market in 2015 seems to be only going in one direction, that is down. In February of this year, Russian new car sales plummeted 37.9% year-on-year, and fell again after a 24.4% year-on-year decline in January. Since March last year, Western countries have launched several economic sanctions against Russia on the Ukrainian issue, which has aggravated Russia’s inflation and the devaluation of the ruble. Coupled with the continued decline in international oil prices, the Russian economic situation is even worse, and the automobile industry, which is a pillar industry in Russia, has also been hit hard.
Due to the sharp shrinkage of the Russian auto market, the situation of Chinese independent brands in Russia is not optimistic. Last month, Russia's overall auto market plunged nearly 40%. The sales of China's own brands in Russia “suddenly fellâ€. Many brand sales plummeted by more than 50% year-on-year, and some independent brands even sold zero. The analysts predict that the Russian auto market crisis will not improve in the short term. Many multinational auto companies have taken temporary measures to close factories and lay off employees in Russia, and some brands even choose to withdraw from the market. In this grim environment, where will China's own brands go?
â– Russian car market plunged nearly 40% Due to the deterioration of Russia's geopolitics and macroeconomic environment, the Russian consumer confidence index continued to fall, hitting the country's auto market. According to data provided by the European Business Association, in February of this year, the sales volume of Russian new cars and light commercial vehicles was 128,298 units, a sharp drop of 37.9% year-on-year. From January to February this year, the Russian auto market sold 243,826 vehicles, down 32.1% year-on-year.
At present, the Russian auto market is a “free fall movementâ€. Russia's fragile economic form and weak money market have increased the cost of car purchases. Consumers in the country have delayed the purchase of bulk commodities such as automobiles, and the Russian auto market as a whole will continue to fall. The European Business Association had previously predicted that sales of the Russian car market would fall by 24% in 2015. It seems that this prediction seems to be somewhat optimistic. The chairman of the Association's Automotive Committee, Schreiber, said: "The Russian auto market is entering a very difficult phase. The sales slump in February is only the beginning. In the next few months, the auto industry will be extremely difficult, but the market has not bottomed out. From the macroeconomic aspect In the future, the stability of the ruble exchange rate will promote the improvement of the auto market. Before this, market participants need to maintain patience and peace of mind." "At least 70% of the cars currently sold in Russia are at a loss. They chose to 'have a long way to go here', just hope that the Russian auto market will return to growth one day, and Russia will maintain its original market share," said Datskiev, general manager of Auto-dealer, a Russian auto dealer portal.
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