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Sales Volume of Light Vehicles in Russia to Approach 2.4 Million Units in 2023
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The shifts in Russian economic and legislative environment changed the landscape of the automotive sector. As the market entered the new paradigm of post-recession economic recovery, the key participants in the segment (including OEMs and dealer chains) are preparing to tap into the new opportunities and develop a long-term strategy to hedge against the potential future risks that emerging markets are susceptible to. This study is a tool to be used in guidance for potential and current investors that are interested or already operate in the Russian automotive market. This study analyses the automotive market and industry in Russia, provides a strategic overview of the current macroeconomic situation in Russia, and discusses the future projections. The analysis focuses on the investment climate, impact of the recent economic recession on the automotive market, governmental policies, and the regulatory environment related to the automotive industry (implementation of ERA-GLONASS and its implications; trends related to import tariff, excise tax, utilization fee, transport tax, mandatory car insurance, and so on).
The study analyses historical sales data from 2013 and provides forecasts until 2023, outlining the key driving and restraining forces that will impact the market over the next 5 years. The study captures such drivers as post-crisis demand revival, legislative initiatives targeting the fleet renewals, shifts in auto financing, and others. On the other hand, examples of restraints discussed include high borrowing costs and a decline in the model range supplied in the market.
The study outlines the key opportunities with regard to the LV market in Russia (such as the overall need to replace the aged vehicle fleet, resilience of the premium segment, and strong demand for SUVs). This research service provides insights on the used vehicle market (including the forecast till 2023, breakdowns by age and make, and the value chain) that gained strength in the time of economic downturn, as customers experienced a decrease in purchasing power and difficulty in obtaining credit. The analysis of the key segments is included in this work and confirms the projected growth in the SUV segment due to customer preferences and increase in supply of SUV models in the Russian market. Examples of the best-selling models within the key segments are outlined as well (this includes brief information about the vehicles’ key features and the formula behind their success).
Other points discussed in the study include: industry and localization, auto components, dealers snapshot, future technology trends (market for electric cars and infrastructure) and fleet/leasing with an overview of key regions. The study is based on the Frost & Sullivan scenario.
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