New-Vehicle Demand Remains Weak in Russia
Industry consensus is there is no reason to believe in fundamental reversal any time soon.
Russia’s weak new-vehicle sales trend is continuing, with May deliveries off 12.2% to just 201,487 units.
The Association of European Businesses Automobile Manufacturers Committee says that after five months, the Russian market now is down 5.6% to 1,030,533 units.
Committee Chairman Joerg Schreiber says May saw a continuation of the anemic sales trend broadly anticipated for the whole second quarter.
“Overall market dynamics in April-May are very similar to the same period last year, marking two consecutive years of sales decline,” Schreiber says in a statement.
“To put things in perspective, in the record year 2012, combined sales in the April-May period exceeded current market performance by 19%,” he says.
Industry consensus is there is no reason to believe in fundamental trend reversal any time soon.
“The best scenario under the given circumstances appears to be the absence of a further trend deterioration,” Schreiber says. “June shall give us a clue about where the market is headed moving into the second half of the year.”
Lada led all brands in May, with sales off 10.4% at 34,061 units for a 5-month total down 14.2% to 162,694.
Second-placed Kia weathered the sales slump relatively well, with deliveries down just 2.2% in May to 16,917 units for a year-to-date total of 76,950, off fractionally from like-2013.
Renault ended May in third place, down 12.3% to 16,295 units for a 5-month total off 6.8% to 79,942.
The Avtovaz-Renault-Nissan group posted a 5.9% drop in May to 63,705 vehicles, for a 5-month total down 5.1% to 316,678.
Volkswagen Group saw May deliveries slide 12.0% to 22,569 units, with a year-to-date total off 6.1% to 111,994.
General Motors sales collapsed 30.5% to 13,451 vehicles, but it maintained third place with 5-month totals off 12.2% to 87,023.
The Lada Granta was the month’s top-selling model, with deliveries down 10.5% to 12,947 units, ahead of the Hyundai Solaris (9,791) and Kia New Rio (8,513).
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