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The report in focus

Automotive Industry In Russia. Results of 2019. Prospects

Automotive Industry In Russia. Results of 2019. Prospects

Exit date 02.06.2020

Format PDF, 55 стр.

Price 960 eur.

report contains information on automotive vehicle production in Russia, particularly passenger cars and commercial vehicles

02 june more info

Analytics

Russian dealers of Ford began sales of updated Mondeo

Ford Mondeo sedan has received a technological upgrade aimed at the safety improving of the car and improving of the intelligent driver assistance systems. People can order updated Ford Mondeo at all official Ford dealers in Russia.

05 julymore info

Infographics

Which car options are considered the most useful with Russian customers?

News

Measures have been developed for state support of the automotive industry

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By the results of the Friday meeting on the development of the automotive industry, held by President, Vladimir Putin, a number of preventive measures were developed to ensure the stable operation of the automotive industry and support the industry.

So, following the meeting, Vladimir Putin instructed to organize the operational work to remove administrative barriers, including in the car market, so that it would be possible to buy a car remotely, the press service of the Ministry of Industry and Trade of the Russian Federation reported.

The head of state ordered to send additional 7 billion rubles to the preferential demand support programs “First Car” and “Family Car”, and also proposed to expand the conditions for supporting preferential leasing and allocating 6 billion rubles to the “Russian Tractor” and “Own Business” programs, which also offer a discount to buyers on advance payments. In addition, Vladimir Putin has ordered to allocate 2.5 billion rubles to car sharing companies and provide preferential leasing arrangements for them.

The new program “Affordable rent” will provide an opportunity to support small and medium-sized enterprises, as rental costs are in expenses that are incurred in cost. Besides the procurement of ambulances the resident ordered to send additional 5 billion rubles for the purchase of ambulances. Recall that earlier the government has already allocated 5.2 billion rubles from federal funds for the purchase of 1,200 resuscitation vehicles for regional medical institutions. Speaking about urgent measures designed to ensure the loading of enterprises and to cover the liquidity shortage, Denis Manturov proposed to make advance purchases of vehicles by federal executive bodies, organizations and enterprises with municipal and state participation this year, moving them from 2021 and 2022. The president supported the proposal to develop a set of solutions to increase the demand for vehicles from the state and companies with state participation.

Vladimir Putin also noted the need to work out a mechanism for providing loans for working capital replenishment for automobile industry enterprises. According to the Association of European Businesses, sales of cars and light commercial vehicles in Russia in March grew by 4% to 162,321 units. For the first three months of 2020, the Russian car market reached 398,518 vehicles (+ 1.8%). Meanwhile, since the end of March, car dealerships have been closed as part of the measures introduced in the country to counter the coronavirus pandemic. Some dealers in these conditions switch to online car sales.

According to the director of the analytical agency AUTOSTAT, Sergey Tselikov, such April has never been in the history of the Russian market. Given that almost none of the dealers will work, sales will decrease by 70-90%. There are some regions where some dealers still work on some days of April. They will provide 10-30% of the market. “I’m afraid that May will start no better than April and the result of May sales will depend on the end date of buyers' “isolation” from dealers. It may well be a drop of the same 70-90%. Further I would very much like to believe that the acute phase of the coronavirus will pass. In this case, from June, the country will begin to return gradually to its normal working rhythm. But the demand for new cars will still not return to the “pre-virus” level. And a strong influence on the market of the economic crisis will begin. Purchasing power will decrease even more, and prices will rise even higher. Throughout the year, one can focus on the market of new cars reducing from -30% (optimistic scenario) to -50% (pessimistic scenario),” - predicts Sergey Tselikov.

29.04.20 AUTOSTAT
Source: www.autostat.ru