Russia Is Now Europe's Biggest Car Market; Chevrolet Best-Selling Brand
July 09, 2008
Russia sped by Germany as Europe's biggest car market in the first half of this year, with Chevrolet being the best-selling brand there, the accounting firm of PricewaterhouseCoopers LLP reports.
First-half sales in Russia rose 41 percent to 1.65 million cars. The accounting firm said spending on vehicle increased 64 percent to a record $33.8 billion, buoyed by $27 billion in sales of Chevrolet and Hyundai models. Almost half of Russia's car sales are imports, with Chevrolet being the No. 1 seller for the first half. Hyundai ranks second and Ford is third.
Almost half of Russia's sales are of foreign brands. Chevrolet was the best-seller in the first half, followed by Hyundai and Ford.
Industry executives had long predicted Russia would become Europe's top car market but it is happening sooner than most expected.
Full-year sales are likely to hit 3.8 million this year, if current growth levels continue, the accounting firm said. German auto sales are likely to total 3.2 million for the year, according to a trade group there.
Russia's car sales growth is forecasted to continue growing for the next several years due to higher incomes from increased oil demand. Russia will account for 20 percent of global growth in car sales through 2015, according to the accounting firm's study.
Posted by Michelle Krebs at 12:16 PM under News | Comments (4) | digg this | Seed Newsvine
With USA now at an annualized rate of 14M cars, Russia rocketing to 3.2M, China climbing towards 10M units by 2010, and India only just starting with 1M odd units, is this just another BRIC in the wall in the demise of the North American dominance of the auto industry. Are we to see GM and Ford reregister in the Cayman Islands and do all of their business offshore or maybe it will follow the British car industry where one day in the future we will reminisce about Buick and Pontiac in the same breath as Leyland, Rover, MG and Austin.........
Posted by: gregtr | July 09, 2008 at 5:27 PM
Even if it comes down to the USA being the eighth or ninth-ranked market, 14M units per year is still huge.. Hmmmm... would a six passenger pickup be called a Kruchev?
Posted by: fulcrumb | July 13, 2008 at 6:11 PM
If you can believe what Porsche and Ferrari are telling their US dealer principles, Russia and China will be taking production allocation away from the US market (due to declining demand and the pitifully devalued US dollar.)
I'd say the car market growth estimates for Russia are conservative, but hell, 20% of global market growth -- that's a game changer.
I'd like to understand how auto makers are changing their game to sell into new markets were perhaps the criteria for the cars does not hold to the increasingly more stringent regulations (safety, emissions, warranty) that have made it so difficult to sell cars in markets like the US.
Is there any chance at all that Russia and China will bypass conventional fuel vehicles and go directly to an infrastructure of electric vehicles (especially for mass transit and freight.)
Where is Russia making money and how are its people buying cars (at various price segments?) I keep hearing that the US is buying from Russia (when the US should be moving to independence, especially from non-allied countries.) Haven't we learned this lesson in buying from other countries which have become, let's say, "problematic?"
Posted by: adamgreen | July 14, 2008 at 4:10 PM
adamgreen- Russia is big in exporting natural gas, petroleum, wood and minerals. The USA imports a lot of pig iron and titanium from them. https://www.cia.gov/library/publications/the-world-factbook/geos/rs.html has the full scoop.
Posted by: fulcrumb | July 14, 2008 at 7:54 PM