PM says car sales stop falling, 86% of sold cars assembled locally

GORKI, Moscow Region, Feb 27 (PRIME) -- About 86% of all cars sold in Russia in 2017 were assembled locally, and the fall in sales has ceased as both businesses and individuals stop holding back of major purchases, Prime Minister Dmitry Medvedev said at a meeting to discuss car industry development strategy till 2025 on Tuesday.

“This year’s first results also look positive. Producers who have localized their production facilities in Russia benefit because the share of locally-produced cars in the sales structure rises systemically to about 86% on average,” he said.

Medvedev said that sales of new cars stopped falling in 2017.

“The market has begun to recover. Last year Russia-based facilities’ output increased 20% on the year in all segments from light passenger cars to buses,” he said and added that exports of ready cars and components also grow.

The prime minister said that Russia needs affordable and good quality vehicles, as well as industries ensuring higher added value and better engineering competences.

Medvedev said competition on the Russian car market has decreased but the government should be ready for its future rise and make well-balanced decisions to attract investment and raise exports to support the domestic car industry.

“It is clear that competition has weakened because a number of car brands have left the market. However they may come back, our market is open in these terms, and we need to prepare to stronger competition.”

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