Russia warned of a likely reduction in the number of dealers

the Number of dealer centers in Russia decreased in January—June of this year was 230, and in the case of the deterioration of the situation, the negative trend may continue.

“the Contraction in the first half amounted to 230 dealers. Now the dealer network has 3152 dealerships”, — told RIA “news” in a press-service of the Association “Russian automobile dealers” (road).

in this road, expect a “continuation of reductions in case of deterioration of the economic situation and the possible recurrence of the period of limitations due to the pandemic.”

Recall that the production of passenger cars in Russia decreased in January—June 2020 34.9% yoy to 510 thousand units. In the June issue of passenger cars fell by 24.1% yoy, but jumped 2 times from the previous year.

we also Add that the sales of new passenger and light commercial (LCV) cars in Russia fell in June 2020 14.6% yoy (after the collapse of 51.8% in may and 72,4% in April) to 122,622 thousand units. For the first 6 months of this year in Russia were sold 635,959 thousand cars and LCV (minus 23.3% in annual terms), it follows from the estimates of the Committee automakers Association of European businesses.

Commenting on the results, Chairman of automobile manufacturers Committee AEB Thomas Starzel noted that “”after two months of sharp fall in car sales in June showed signs of a slow return to the results of last year”. “Despite the fact that the dealers work, measures of state support to encourage sales, and positively affected by pent-up demand in June, we are seeing a decline in sales of 14.6% compared to June 2019. For manufacturers and dealers the past six months have resembled a roller-coaster: a small rise in the beginning of the year, an unprecedented sharp drop in April—may and a slow Vossrecovery in June. Drop by 23% compared to June of last year generally corresponds to the new forecast of the AEB in the year 2020: 1 million 339 thousand vehicles sold, also below last year’s level of 23.9%. The new forecast is based on the assumption of continued state support to stimulate customer demand and the absence of the second wave of the pandemic”, — the expert believes.

In late February, the international rating Agency Investors Service Moody’s did not rule out a decline in sales of cars in Russia in the current year by 4%, “amid continued slow economic growth and lack of government stimulus”.

And at the end of April experts of the consulting company PwC did not rule out that the sales of new passenger cars in Russia by the end of this year may have fallen by 30% over the previous year to 1,142 million cars. In this scenario without taking into account stress factors for 2020 implies a decline of only 3.7% to 1.57 million vehicles.

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