Russia economy: Quick View – Car sales in 2012 reach record high

Event

In 2012 a record total of nearly 3m passenger cars were sold in Russia.

Analysis

Car sales in 2012 were 10% higher than in 2011. Although sales growth slowed sharply in the final months of 2012, Russia is set to become Europe’s second-largest car market (after Germany).

Russia’s passenger-car market had already recovered strongly in 2010 and 2011 following a slump in 2009, when car sales more than halved compared with 2008. As a result of this recovery, assisted by the government’s car scrappage scheme, annual average growth in passenger-car sales reached around 30% in 2010 and almost 40% in 2011. However, credit and real incomes will grow more slowly in the next few years than before the 2009 crisis, constraining sales growth.

Sales of AvtoVAZ cars declined by an estimated 2% in 2012 to 718,000 units, leaving the Lada brand with a market share of just over 18%. In second place was Chevrolet (US; a General Motors brand), with a market share of 7%, followed by Renault (France), Kia (South Korea), Hyundai (South Korea) and Volkswagen (Germany), each with around 6%.

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