Russian car sales are expected to decline by 8 to 12 percent this year, PricewaterhouseCoopers said Tuesday, downgrading its forecast for the market hit by a sharp economic slowdown and devaluation of the ruble.
The sales of new cars in Russia are seen in a range of 2.3 to 2.4 million units, Sergei Litvinenko, PwC's automotive practice senior manager, told reporters.
In the first half of 2014, car sales in Russia fell 7 percent, year-on-year, to 1.16 million units, according to PwC. In money terms, the market declined 3 percent to $31.5 billion.
Among reasons for lower sales, PwC cited uncertainty linked to the Ukraine crisis and a weaker ruble, which causes higher prices for cars which, if not imported, have many imported parts. The interest rates on auto loans also rose.
Litvinenko said the market was expected to recover to its 2012 level in the next two or three years and would then grow by an annual 3.0 to 3.5 percent.
In January, PwC forecast a 3 percent fall in Russian car sales in 2014 to 2.54 million units.
They fell 5.5 percent to 2.61 million units last year with revenues down 3 percent to $69 billion.
The Association of European Businesses, or AEB, also cut its outlook for the market last month, predicting a 12 percent drop compared to its previous forecast for a 1.6 percent decline.
See also:
Collapsing Russian Car Market Threatens to Sink Launch of New Sedan
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
