Bloomberg reported that Russian car sales fell
43% last month, as the economy slides into recession.
The Association of European Businesses in Russia in a statement said that sales
of new cars and light commercial vehicles shrank to 139,850 units in March from
243,332 a year earlier. That matched the median estimate of six economists
surveyed by Bloomberg.
Car producers in Russia are suffering as last year’s ruble collapse raises the
cost of imported parts and the country’s economic woes curb consumer demand.
General Motors will idle a plant in St. Petersburg this year and halt sales of
its Opel brand and most Chevrolet models. Other producers, including Volkswagen
AG and PSA Peugeot Citroen, plan to cut jobs in the country.
Mr Joerg Schreiber, chairman of the business association’s Automobile
Manufacturers Committee, in its statement said that “What we are seeing now in
the sales statistics is the long-predicted ‘hole’ in consumer demand, caused by
the pull-ahead of car purchases at the end of last year, and compounded by
heavy price inflation in the current year. The situation will stabilize, but we
are not at this point yet.”
According to government forecasts, the economy of the world’s biggest energy
exporter is forecast to shrink 3% this year, hurt by US and European sanctions
over Ukraine and a slump in oil prices to 6 year lows. Retail sales may fall
8.2%, and annual inflation may end the year at 12%, after accelerating to 17%
in March, the highest in 13 years.
Source : BLOOMBERG