Incentives Fail to Halt Russian LV-Sales Tailspin

Sales of new cars and light-commercial vehicles in Russia continued their long fall in July, this time dropping 27.5 % year-on-year to 131,087 units.

The Association of European Businesses Automobile Manufacturers Committee says the result left year-to-date sales down 35.3% at 913,181 units.

Committee Chairman Joerg Schreiber says after a cumulative volume loss of 36% in the first half of the year, the 27.5% fall in July almost looks like a piece of good news.

“In reality, what we are seeing is mostly the low-base effect of a poor market showing in the corresponding period last year,” Schreiber says in a statement.

The fundamental performance of the automotive market continues to disappoint, he says, in the framework of a struggling economy and falling consumer incomes.

“Purchase incentives provided through government programs and by the market participants themselves have proven instrumental in avoiding an ever sharper decline,” Schreiber says. “However, (those factors) would need to be enhanced significantly to be able to reverse the trend in a substantial manner.”

Market leader Lada dropped 25% for the month to 20,944 units for a 7-month total down 27% at 161,630.

Kia was a distant second, down 13% at 15,303 units and was off 18% year-to-date at 89,561.

Hyundai followed, down 15% in June to 12,251 units, but remained in second place for the January-July period, off 12% at 91,696.

Chevrolet was the sixth most popular brand in July, falling 26% to 6,228 units, but was off 61% in the first seven months at 28,911.

Ford languished in 12^th place, down 21% in July to 3,541 units for a 7-month total off 52% at 17,191.

Among the major groupings, the AVTOvaz-Renault-Nissan alliance saw its July result drop 26.7% to 38,676 units for a year-to-date total down 28.0% at 308,467.

Volkswagen Group fell 37.0% for the month to 12,492 units. After seven months, VW was down 40.3% at 92,307.

General Motors was off 36.2% in July with 8,592 units for a year-to-date total down 63.9% at 40,793 units.

Apart from Chevrolet, GM’s Opel unit fell 54.0% for the month to 4,962 units for a year-to-date total down 63.9% at 40,793 units, while Cadillac fell 18.5% in July to 96 units, giving it a 7-month tally down 28.9% at 560.

Hyundai’s Solaris was July’s top-selling model, rising 4.8% to 10,251 units, ahead of Kia’s New Rio, up 33.5% at 9,151, and Lada’s Granta, down 22.96% at 9,105.

But after seven months Granta continued to lead the market, down 12.7% at 72,678 units. Solaris followed, down 2.1% at 63,953, ahead of the New Rio, off 4.1% at 51,839.