While most global auto markets are starting to show signs of bottoming out, the Russian car industry seems to be stuck in a perpetual free-fall. Following several years of rapid expansion, the Russian market has hit the skids, with July sales plummeting from a year earlier.
According to Automotive News, Russia’s new car sales plunged 58 percent last month, totaling 115,483 units. Sales were down 56 percent in June.
Ford – Russia’s third best-selling brand – was hit hardest by the market decline last month, with sales falling 72 percent to 5,333 units. General Motors’ Chevrolet brand wasn’t far behind with a 59 percent drop-off, tallying 7,798 July sales. Chevrolet is Russia’s number two selling brand.
Even Russia’s top-selling marque – Lada – was hit hard by the market collapse, with sales dropping 42 percent to 32,426 vehicles. Through the first seven months on the year, Russia’s auto sales are down 50 percent.
Russia’s sharp market decline is particularly worrisome to the world’s automakers as the Russian government recently doubled its auto bailout efforts. Russia’s main auto incentive package was intended to reduce the costs of auto loans, but appears to be having little positive effect.
