Analysts from Togliatti claim that 2.782 mln. cars were sold in Russia in the past year, compared to 2.06 mln in 2006. Thus, the market has shown a 35.5 percent growth in physical terms and 57.3 monetary (from 32 to 53.4 bln dollars).
Out of the 53 billion, over 40 was spent on new foreign cars, 6.8 bln – on second hand imported cars, and only 6.16 bln dollars on the production of Russian brands.
AvtoVAZ, Russia’s major car producer and market player has managed to raise sales under its internationally known Lada brand. Keeping prices on the same level as before, introduction of new car models and modification and marketing strategies have helped AvtoVAZ to sell 663,500 cars, compared to 625,000 in 2006. However, Lada’s market share shrunk from 30 to 24.4 percent. The cheaper ‘classic’ old Lada models where traditionally more popular with Russians than the newer ones.
Chevrolet was the most successful foreign brand in 2007, selling 170,000 cars in Russia, followed by Ford (155,000 cars) and Toyota (132,000).
Russians’ growth in prosperity is believed to an important automobile market driver, as well as development of loan market. According to Avtostat, about 20 bln dollars were given to Russians in auto loans in 2007. Another important factor is the development of international car manufacturers’ assembly and production lines on Russian territory, and more foreign producers are expected to come. Toyota, Volkswagen, Nissan and Genaral Motors are planning to launch their plants in Russia in 2008 and 2009. The already existing Ford, Fiat and Isuzu facilities are actively accelerating.
Thus, the pressure on the country’s market by international cars will only grow in the future, and this is a challenge for AvtoVAZ. Russia’s giant has recently formed a strategic alliance with Renault-Nissan that is supposed to help it come up with some new models and further raise sales. AvtoVAZ President Boris Alyoshin aspires to make up to 1.25 mln cars a year by 2010. If this happens, Russia will outrun Germany and become Europe’s biggest automobile market
Denis Kvasov
Photo: dailycars.ru
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