Krasnodar, 22 February – Yug Times. The year 2019 promises to be a challenging year for the Russian car market.
According to experts, the national car market growth rate will decelerate in 2019 - even if compared with a standard 13% growth last year. There are a number of reasons contributing to such assessment - like , the recent VAT increase, rouble’s instability against major foreign currencies, and, finally, considerable fall of Russian people’s paying capacity. So - what should both market players and consumers expect t his year?
The pessimism in the assessment of the nearest future of the car market is explained by the fact that its growth in the past two years was related to, among other factors, state support of this segment. What is at issue is the privileged crediting programs, First Car and Family Car. It is not known yet if the Russian Government will extend these programs for 2019. What is known is that if the programs wouldn’t be extended, the national car market would either stagnate (that would be the best scenario) or even start falling.
However, there is some cause for optimism too: several important new car models will appear in Russia this year, which fact would animate the market - many customers would be eager to get the premiere model. Let us look at Toyota, for instance - a favourite car of many Russians. The Japanese carmakers will present new models: Corolla and RAV4. They will be narrowly followed by a series of Czech-made car models. The third position is to be occupied by Renault Arkana, which is to be launched in the market in early summer. What will the new prices look like?
“Hyundai-KIA have for a long while been holding their prices, and thereby they have grasped a considerable part of the market - but everything has its limits,” Yug Avto Car Holding Deputy General Director Leonid Volynsky states. “Most likely, the prices will be going up - and not only for the imported cars that depend upon the currency rates. I believe that SKD cars assembled in St. Petersburg, Kaluga and Nizhny Novgorod will also become more expensive: the [multinational] companies will have to recover their investment at any exchange rate.”
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