Prospects for the Russian automotive market

20 January 2010
Moscow, PricewaterhouseCoopers Office

PricewaterhouseCoopers (PwC) presented a review for 2009 — “Prospects for the Russian automotive market”. The negative impact of the global crisis on the Russian automotive market was one of the most noticeable worldwide because of the strong market growth in the preceding period, the high dependence on imported cars, followed by a rapidly weakening Rouble, increasing interest rates and fall in consumer confidence.

In 2009 the market declined by 56% (including imported second-hand cars and excluding LCVs) in quantitative terms and by 61% in monetary terms that accounts for $26.8 billion. Locally produced foreign-branded cars was the segment that declined the least.

Due to warehouse overstocking and declining demand for cars, both Russian and foreign car manufacturers have had to cut back significantly on production — overall reduction was 60%. Based on results of 2009 the production of foreign brands fell by less than production of Russian brands. PwC specialists expect that internal production in 2010 will grow faster than the overall market since OEMs have managed to clear out their stock overhang from 2008.

You can find more detailed information about the development trends of the Russian automotive sector in the presentation “Prospects for the Russian automotive market” (167 Kb).