the Russian car industry, as the automotive markets of other countries, faced with falling demand for cars during the crisis caused by the impact of the pandemic coronavirus infection COVID-19, and the fall in oil prices in March this year. This was stated by Director of Department of car industry Minpromtorga of the Russian Federation Denis Pak at the conference “Sberbank About”.
According to him, “as a result of the global economic crisis, which caused a pandemic and the fall in oil prices, all the automotive markets, demand for cars declined significantly”. “The Russian market is also located in this General negative trend”, — quotes TASS of the Pack.
In this regard, the head of the Department stressed that “the auto industry (on measures to support demand — ed.) this year allocated more than 45 billion rubles.”
this, in particular, the program of preferential car loan, discount car leasing, leading public procurement of vehicles procurement of ambulance and mobile intensive care units.
Recall that the Russian economy in February—March 2020 was under the powerful impact of two negative factors — the rapid spread of the pandemic coronavirus infection COVID-19 and its deleterious effect on the global economy and collapse in oil prices. Against this background, the rouble significantly depreciated against the dollar and the Euro. Reacting to the situation, the government and the Bank of Russia adopted several packages of measures to support the economy and citizens.
Note also that the production of passenger cars in Russia, according to Rosstat, decreased in January—may 2020 37.2% yoy to 406 thousand units. With may production of passenger cars fell by 54.4% in annual terms, but surged by 70.3% of the previous month.
sales of new cars and light commercial (LCV) cars in Russia fell in may 2020 51.8% yoy (after the collapse of the 72,4% in April and 4% growth in mArte) to 63,033 thousand units. For the first 5 months of the current year in Russia were sold 478,135 thousand cars and LCV (minus 25.7% in annual terms), it follows from the estimates of the Committee automakers Association of European businesses.
Commenting on these results, Chairman of automobile manufacturers Committee AEB Thomas Starzel noted that “the showrooms of Moscow, St. Petersburg and most of the regional dealers were closed for the entire month.” “Technical centers were able to resume work, and, accordingly, the flow of customers began to grow. We expect that in June amid the easing of restrictions in most parts of the country the situation is slightly improved, which will positively affect the sustainability of the dealer network. Implementation of the first package of measures of state support will contribute to the gradual recovery of the market in the second half of the year”, — 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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