The report in focus

Automotive market in Russia-2017

Automotive market in Russia-2017

Exit date 05.06.2017

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Price 1320 eur.

We have issued the fifteenth edition of our annual reference book "Automotive market in Ru...

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Top news

State programs «The first car» and «Family car» will be completed ahead of schedule 20.10.17 - 15:56 State programs «The first car» and «Family car» will be completed ahead of schedule

In 2017, there were allocated 3.75 billion rubles to both programs.

Analytics

European autobum

European car market has been growing for the ninth consecutive month. In May, sales jumped by 4.3%. Total for the current year it was sold already 5.62 million new cars in Europe. Experts believe that the positive trend will continue in Europe and in Russia because of the economic instability sales will continue to decline.

European car sales in May rose by 4.3% and they were 1.13 million units compared to 1.09 million in 2013. Thus, in the first five months, sales reached the level of 5.62 million vehicles, which is more by 6.6% than the last year's result, according to Bloomberg. According to the European Automobile Manufacturers Association (ACEA), the European car market shows the growth ninth consecutive month. Among the largest car market of Europe the fall was shown only by Italy (-3.8%), and in other major countries it was recorded an increase - from 0.3% in France to 16.9% in Spain.

According to experts, sales are growing due to the growing confidence of buyers, who have started to buy new models from Renault, Volkswagen, and General Motors. The greatest growth in this month was showed by Renault, whose sales in May jumped by 18% immediately. PSA Peugeot Citroen was in the second place with a market share of 4.2%, and the first line was occupied by Volkswagen, which got 9.5% of the total market sales.

Renault

Sales of Renault cars, which in some countries in Europe are sold under the brand Dacia, increased by 24% in May - good results were provided by the low-end models: Duster crossover and Sandero hatchback. Sales of Skoda grew by 23% that were provided by sales of the new version of the Octavia. Seat grew by 22%, Volkswagen and Audi have grown by 4.8%. As the sources say, familiar with the situation, to surpass Toyota in the global market, Volkswagen plans to expand its model range of crossovers three times.

Peugeot

The impetus for the demand growth for Peugeot cars was the appearance of a compact SUV in 2008 and 308 hatchback. Companies even had to increase their production in order to close all received orders. European sales of Peugeot rose by 4.8% in May, while the number of new Citroen owners increased by 3.5%. Management of PSA Peugeot Citroen is confident that they have all the chances to achieve a 10 per cent growth this year. Common European sales of “twins” Opel and Vauxhall from General Motors rose by 6.2% last month that was provided by the appearance of a compact SUV and compact car Mokka Corsa.

It is known that by 2018 Opel will expand its model line up to 27 completely new or restyled models to overtake Ford, the second largest car brand in Europe after VW. The CEO of Opel, Karl-Thomas Neumann, said that the company expects to achieve 8 percent share of the European market by 2022.

BMW and Mercedes-Benz

European sales of BMW fell 2.5%. Main sales are belonged to the BMW 5 Series, in addition, the company has serious plans for the new BMW 2-Series Coupe. Sales of Mercedes-Benz, which ranks third in Europe by sales in the premium segment after BMW and Audi, rose to 6.1%. Special demand was provided by the C-Class sedan and compact SUV GLA. Results of Smart fell by 16% - this is due to the preparations for the launch of new two-seat and four-seat models. Furthermore, sales of Nissan increased by 10%, by 2,2% - Toyota. Ford fell by 2.8% and Fiat SpA - by 2,9%.

It is noteworthy that many good results in the beginning of the year were contributed traditionally by discounts that dealers engage their customers. For example, their size was about 11.3% from the recommended price in the German market. A year earlier, the average discount was 11.6%. The only dealers that have reduced the prices even more than in 2013 were ones of Audi and Volkswagen.

Thus, the car market in Europe is recovering from a long fall. Consumer confidence in the euro zone rose in May to the highest level since October of 2007. The managers of the largest industrial enterprises predict that in 2014 sales will rise by 2-3%. Thus, according to the analyst of German Bank Bankhaus Lampe, Christian Ludwig, the demand for cars in the coming months will only increase. According to him, after six years of decline in car sales it was accumulated considerable pent-up demand in Europe, which should stimulate sales growth in the next two years.

While in Russia in May it was sold 201,487 new cars - it is less by 12% (28,019 vehicles) compared to May of 2013. Since the beginning of the year the market has dropped by 6%. Such data was presented by committee of Automakers of Association of European Businesses (AEB). According to committee chairman, Jörg Schreiber, the Russian car market still cannot count on the way out of the crisis. The best sales cars in Russia in May are among Lada, KIA, Renault, Hyundai, Toyota, Nissan. European leader Volkswagen took only the seventh place.

Analyst of “VTB Capital”, Vladimir Bespalov, believes that car market recovery will continue in Europe, as the prospects of the economy become more defined. In Russia, by contrast, the situation is complicated by economic obscurity.

“In Russia the purchase of durable goods is postponed to a later date”, - says Mr. Bespalov. – “One of the reasons was the devaluation of the ruble, which took place this year, and the unstable situation with the exchange rates, which led to higher prices for cars. In Russia, 2014 will be difficult, but in the second half of the year the situation will be better definitely than in May”.

Mr. Bespalov is sure that there is specificity in the Russian car market associated with AvtoVAZ, but the situation is no different from the European market. “Volkswagen has a long term strategy to increase global market share and to become a global leader”, - said Mr. Bespalov. – “The company offers great discounts and in some cases it is even ready to sacrifice margins. If you take all the brands Volkswagen, then the company takes in Russia very good position and it was in the second place at the end of May. Of course, it is quite difficult to supplant AvtoVAZ and Renault Nissan from the first places”.

Deputy chief editor of “Za rulem” magazine, Igor Morzharetto, in his turn, informed “Gazeta.ru” that currently the majority of Russian plants operate under the order. And despite the drop in demand, we should not expect overstocking. In addition, the assembled cars will go hardly abroad for sale because of the complexity of customs legislation.

19.06.14 AA "AUTOSTAT"
Source: www.autostat.ru