Sales Continue To Decline In Russian Auto Market
News: New car sales in Russia have seen a decline for an eighth successive month in October 2013, down 8% year-on-year (y-o-y) to 234,481 units, Auto News reports, citing new market research. According to the research, the general sales trend in the Russian market remains weak and there are no signs for improvement, although neither is there a forecast for further deterioration. The Lada brand from domestic automaker AvtoVAZ was the best-selling line during the month, although its sales during the period fell by 25% y-o-y to 37,484 units.
BMI View: This quarter, BMI has revised its 2013 new vehicle sales forecasts downwards, against a backdrop of falling sales year-to-date. Light vehicle sales in Russia declined by 8.3% year-on-year (y-o-y) in July, to 234,569 units. Over the first seven months of the year, sales in this segment have now declined by 6.2% y-o-y, to 1,567,892 units. Following the strong decline in sales volumes, and with the country's weak consumer story increasingly impacting the segment, we are downgrading our 2013 passenger car sales forecast to a 5% decline, to 2.6mn units, from a 3% fall previously, and now forecast a 5% decline in the light commercial vehicle (LCV) segment, to just below 180,000 units, down from a drop of 4% previously.