Imports Not Immune From Russian Auto Industry Slump

ST. PETERSBURG – Car imports into Russia have declined sharply along with sales of locally built vehicles.

Russian Federal Customs Service data shows car imports in the first half of the year totaled 179,600 units, down 52.5% from like-2014. Deliveries industrywide during the period were down 35.3% to 913,181 units, according to WardsAuto data.

Although imports comprise about 20% of the Russian market, Minister of Industry and Trade Denis Manturov believes global automakers have chosen to focus on local production as the country’s economic slump, aggravated by Western sanctions, continues.

A spokesman for Manturov says the current crisis is significantly deeper than during the global recession of 2008-2009, when the automotive market was able to recover in a relatively short period.

According to industry analyst Autostat, Toyota was the leading importer into Russia in first-half 2015 with 38,000 units; its RAV4 CUV was the most-imported model during the period. Second place was held by Mercedes-Benz (20,700 units), while Hyundai was third (17,100).

Truck imports into Russia during the first six months of 2015, meanwhile, dropped fourfold to 9,600 units. Overall medium- and heavy-duty truck sales tumbled 34.6% to 26,660, WardsAuto data shows.

As in other markets, whether growing, stable or declining, luxury-car imports into Russia have increased significantly this year.

According to the Customs Service, imports of Rolls-Royce cars jumped 66% during first-half 2015. Imports of Bentley models grew 72%, while Lamborghini recorded a fivefold gain.

Oleg Datskiv, general director of Auto-dealer.ru, another industry analyst, notes the luxury segment remains stable during times of crisis and develops contrary to general market trends.

The current sales growth can be explained in part by attractive offers by Russian luxury-vehicle dealers, and an increase in their numbers, he says.