Russia: Another Month, Another Double-Digit Sales Dip

Russian new-vehicle sales losses accelerated again in May, falling 14.5% to 107,665 units.

Association of European Businesses Automobile Manufacturers Committee data shows the county’s 5-month total down 14.7% at 548,119 units.

“Total sales result in May demonstrates that the road towards market stabilization remains bumpy,” committee Chairman Joerg Schreiber says in a statement.

Yet Schreiber is trying to stay hopeful. “As the car market keeps struggling, the macroeconomic picture gives reason for cautious optimism,” he says.

Schreiber says experts generally agree Russia’s economy has bottomed out, and the outlook for the rest of the year at least is stable, and possibly will be positive come 2017.

“Such perspective is encouraging, of course, but has yet to materialize in consumers’ minds before it can translate into growing confidence and purchase activity,” he says.

“For now, patience remains the order of the day.”

The AEB says it will update its full-year forecast with the completion of June sales.

Lada was the market leader in May, falling 10% from like-2015 to 20,507 units for a 5-month total down 11% at 102,124.

Kia slipped 3% to 11,997 units in May for a year-to-date total down 9% at 56,986.

Hyundai followed, off 22% at 10,603 units, leaving it down 22% at 52,333 on the year.

Ford was in 10^th place as it bucked the trend with sales rising 26% to 3,495 units for a 5-month total up 60% at 16,989.

Chevrolet dropped to 13^th place with May sales off 30% to 2,375 units for a 34% year-to-date slump to 11,869.

Lada’s Granta was last month’s top-selling model, dropping 5.9% to 7,967 units for a 5-month total off 25.8% at 36,748.

Hyundai’s Solaris was in second spot for May, down 29.9% at 7,627 units, but still narrowly led the Granta year-to-date, down 16.2% at 37,254.