Russian Car-Sales Slump Eases Slightly in June

The Association of European Businesses is predicting full-year vehicle sales in Russia will dive 36% year-on-year to 1.55 million units.

The AEB Automobile Manufacturers Committee says its forecast is based on a recent member poll and comes as Russian new-vehicle sales continued their yearlong dive, with June deliveries off 29.7% to 140,161 units.

The result left the first-half result off 36.4% at 782,094 units.

The committee calls June’s 59,237-unit year-on-year drop an easing of the industry’s lengthy slump.

“No reason to relax whatsoever, but it’s worth noticing that the pace of year-on-year volume drain in June is less dramatic than in the preceding months since February,” committee chairman Joerg Schreiber says in a statement.

“Matters could be much worse, if not for two policy-driven factors supporting the market in the right direction – the ongoing reduction in base interest rates, as the door-opener for a successful reanimation of credit-financed demand, and the continuing and recently increased government support to buyers of new cars, by way of subsidizing interest rates or the renewal of older and very old cars.”

Meanwhile, Russian Industry and Trade Minister Denis Manturov tells Reuters the ministry has revised its forecast for a decline in new-car sales this year to 25%-30% from 25%-50%, thanks in part to the scrappage program and loan subsidies.

Market sentiment for the remaining six months of the year remains muted, however, Schreiber says.

Lada continued to lead the market as its sales loss slowed 12% to 26,416 units in June, giving the brand a first-half total down 27% at 140,686.

Kia followed, down 18% for the month at 13,928 units for a 6-month total down 19% at 76,215.

Hyundai dropped 27% to 12,289 deliveries and began the second half down 11% at 29,444.

Chevrolet sales dropped 40% to 4,712 units, good for ninth place in June, and down 65% at 22,683 after six months. Rival U.S. automaker Ford was 14^th with deliveries off 33% last month to 3,023 units and a 6-month result down 56% at just 13,650.

Opel, which parent GM is withdrawing from the Russian market, saw deliveries drop 64.7% to 1,583 units for the month and was down 73.0% at the half at 9,054. Cadillac, one of the remaining GM marques, was up 18.2% in June to 130 units but down 34.4% year-on-year at 464.

Lada’s Granta remained Russia’s top-selling model in June, defying the market with an 8.3% increase to 14,031 units. But it was down 11.1% for the first half at 63,573 units.

Hyundai’s Solaris followed, sliding 12.5% to 9,247 units in June. After six months, Solaris deliveries were down 3.4% at 53,702.

Chevrolet’s Niva, usually hovering around the top 10, fell to 15^th place as June deliveries skidded 20.5% to 2,114 units for a 14^th-place first-half total down 34.0% at 13,761.