About a quarter of Russian automobile dealers on the verge of bankruptcy

About a quarter of Russian automobile dealers on the verge of bankruptcy


Moscow. February 25. About a quarter of Russia’s car dealers are on the verge of bankruptcy, Vice-President of the Association “Russian automobile dealers” Vyacheslav Zhigalov at the conference AutoInvest in St. Petersburg on Thursday.

“This year, dealerships may lose half of their download service. A number of dealers who are on the verge of bankruptcy, I estimate about a quarter of the market, it’s about a thousand companies,” he said.

Zhigalov said that prolonged downturns in the market have a second wave of consequences is an outflow of clients from the service. “Three quarters of revenue of dealers (currently) is the revenue service, as sales have already arrived do not give”, – he added.

According to Zhigalov, the bankruptcy of car dealers would entail the cancellation of hundreds of millions of Bank loans because the dealer network is heavily leveraged.

As reported, sales of passenger cars in Russia in 2015 decreased by 36% to 1.6 million units In January this year, car sales fell 29.1% in comparison with January of 2015.

The number of issued loans in Russia in 2015 decreased by 41% to 485,3 thousand. The share of cars bought on credit, total sales grew by 1.9 percentage points (PPT) to 37.1 per cent