The Russian car market in the first half increased by 7%

Added for the quarter

In June 2017 the sales of new passenger and commercial vehicles in Russia grew by 18 405 units, or 15%, compared to June 2016 and made 141 084 machine, to the report of the Association of European businesses (have RBC).

According to the Chairman of automobile manufacturers Committee of the AEB Joerg Schreiber, the Russian automotive market continues to recover at a steady pace. “15% increase in June and a 12% growth in the second quarter to almost make us forget about the slow start in the beginning of the year,” he adds. The forecast Schreiber in 2017 remains the same — an increase of 6%.

2016 the Russian car market ended a decline of 11% in the 12 months sold a total of 1,425 791 car. The first months of 2017 started with a weak drop of 4-5%. But in March the market for the first time in 2014 increased by 9.4%, slightly improved the results of the first quarter (+1%). The second quarter began with a small growth of 6.9% in April, which experts explained to the holidays. In may the Russian market has made a breakthrough — sales of new passenger cars and commercial vehicles showed double-digit growth for the first time in 2014 (+14.7 per cent).

The second quarter contributed to the fact that in the first half of the growth was 6.9%. In January—June, has sold 529 of 718 thousand cars.

In the top three in the first six months came in Lada sales increased by 13%, the Korean KIA (+22%) and Hyundai (+10%). While sales of Toyota and Nissan, which for several months has demonstrated confident growth in the first six months fell slightly — by 1% and 3% respectively. The largest drop in six months showed SsangYong (-93%) and Brilliance (-85%).

The main factor of sales growth was the implementation of the previously postponed demand, says the analyst of the company “Finam” Alexey Kalachev. The CEO of the company “Independence-Finservice” (included in GC “Independence”) Natalia Zhiltsova notes that in the first half of the year there is a clear trend which suggests the growth of sales to 5% for the year. According to her, among the main factors that influenced the market, — improvement of purchasing power, attractive terms of credit programs with the participation of the state. A significant role in strengthening the market played a resumption of concessional lending program by increasing the maximum rates from 1.15 million to 1,450 million rubles, says the Director of the dealer centre of Hyundai “ROLF Altufevo” Dmitry Shcherbakov.

The share of sales of cars on credit in the first half of 2016 is already close to 45%, said Kalachev. The Deputy predpravleniya of “Autospeccentre” Alexander Zinoviev indicates that the sales volume is highly dependent on support programmes importers, discounts and promotions, as well as the dynamics of the exchange rate.

According to Kalachev, at the end of 2017, we can expect the market growth to 10-12%. “If there are more, so really we can talk about the beginning of the recovery of the market,” he says.

Premium behind

The main growth show the massive brands, said dealers and experts. According to statistics from the AEB, the decline in display several premium brands: Land Rover (-4%), Lexus (-5%), Mercedes-Benz (-7%), Porsche (-17%) and Audi (-24%).

Zhiltsova from GK “Independence” explains the weak sales of cars in the premium segment because the sensitivity of consumers to price is very high. “Over the past three years, the price of new cars increased by 45% on average, and the main price increases will affect the models for direct import,” she said. The Chairman of the Board GK “Avilon” Andrey Pavlovich indicates that sales in the premium segment is affected by a number of factors: weather conditions, traffic situation (more and more people are transferring to metro and public transport) and the emergence of new models. While the “Avilon” the rise of the segment: Mercedes-Benz (+10%), Jaguar Land Rover (+24%), Maserati (six times). Zinoviev from “Avtospetstsentr” notes that sales of premium brands now is very unstable. The group leaders in the premium segment are the BMW and Infiniti, he adds, but specific figures disclose.

The analyst of “VTB Capital” Vladimir Bespalov considers that, subject to a more significant recovery on the premium segment of the final results on the market would be much higher. But while the demand for premium is recovering more slowly than the mass, he concludes.