Association: Russian car sales likely to fall 15-20% in 2016

MOSCOW, Jan 28 (PRIME) -- Russian Automobile Dealers Association expects car sales to fall 15-20% in 2016, Head Vladimir Mozhenkov said during a news conference on Thursday.

“We understand that 2016 will be a difficult year; according to estimates of the association, we understand that the fall will stand at about 15-20% depending on a range of important factors, including the oil price, or the rate of the dollar and the euro, availability of car loans, and dynamics of our citizens’ wages and salaries,” he said.

“It will also depend on macroeconomic situation: whether the sanctions will be lifted or not.”

The Association of European Businesses (AEB) expects the Russian car and light commercial vehicle (LCV) market to fall 4.7% on the year to 1.53 million units in 2016.

“We propose and will propose leasing and exemption from VAT. It will be very significant support to individuals who buy cars. And the second thing – maternity capital – it will be a very significant support,” Mozhenkov said.

In 2015, the Russian car market decreased 35.37% to 1.6 million units, and in 2014 it fell 10.3% to 2.49 million vehicles, according to AEB data.

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