Russian Vehicles Sales 2016 dropped down again in double-digit at the lowest level since the ’90s, almost the half of the 2012 level and falling as World’s 12th market. Lada lost the model’s leadership.
Market Outlook
After two years in recession, the return to growth is expected to be gradual and uneven, given the absence of fiscal or monetary policy support. Moreover, the shock to Russia’s external sector from low oil prices and international sanctions was substantial in 2016 and a quick recovery is not in the cards for now.
However, GDP should continue to strengthen gradually and the economy is expected to enter a shallow recovery this year, but plans to reduce the fiscal deficit will prevent a faster pickup in activity. The analysts we surveyed expect the economy to expand 1.2% in 2017, which is unchanged from last month’s projection, before accelerating to a 1.6% expansion in 2018.
The automotive sector collapse started in the 2013, immediately after the achievement of the actual al time record for the domestic sales (2.9 million units in a year) kept the pace in the 2016 while reducing the falling speed, reaching near 1.5 millions units lost from the record and over 50% of volume.
According to the data released by the AEB, the Association of European Businesses in Russia, the market is now falling since 24 consecutive months with December almost flat with sales at 145.684 (-0.7%), showing that probably the trend is now at the end and just since the first quarter of the 2017 the market will start recovering.
Full year sales had been 1.425.791 units (-11.0%), the lowest level since the ’90s with the market rolling down in the World’s ranking at the 12th step.
Competitive Arena
The brand leader of course was Lada with 266.296 units (-1.0%) ahead of Kia and Hyundai, while among the highest increases there were Lexus, Lifan, Cadillac and Ford. The best performance had been reported by Jaguar, up 113.3%.
SsangYong hit the sharpest slowdown, losing 78.0%, while others struggling brands had been Honda, Geely, Daewoo and Mitsubishi.
The Hyundai Solaris was the best-selling model with 90.380 units (-22.0%), moving out a Lada model from the podium for the very first time!
In second place the Lada Granta with 87.726 (-27.0%) ahead of the Kia Rio with 87.662 (-9.7%).
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models
