Russian auto sales jump 45+ percent in June, July

[NINETY EIGHT REGENCY]

Russian auto sales jump 45+ percent in June, July

By Mark Kleis

Like the U.S. and other global auto markets, Russia faced a steep decline in auto sales during the economic instability of 2009, and now the market appears to be showing signs of recovery after posting two consecutive months of increased sales nearing 50 percent compared to 2009.

The Association of European Business (AEB) has reported the latest auto sales in Russia, and according to a report by Reuters, for the month of July Russia moved 173,171 new cars from dealer lots, narrowly missing the performance in June that resulted in 174,838 sales. These increases, compared to the same months in 2009, represent increases of as much as 48 percent.

But analysts and executives in the auto industry, including AEB member and Volkswagen vice president Martin Jahn, warn that the strong surge in auto sales may only be temporary, boosted by a government scrappage program similar to the Cash for Clunkers program used in the U.S. last year. In addition to the government scrappage program nearing an end, the country of Russia is currently being ravaged by a severe heatwave and drought, worse than any on record for the past several decades.

“In August and September there may be some slowdown due to holidays on the majority of Russian factories as well as emergency weather conditions in several regions of central Russia,” Jahn said.

As if the drought and heatwave were not enough, several massive forest and peat moss fires are also raging out of control, with toxic smoke killing hundreds of citizens and closing down industrial centers. As a result, Reuters is reporting that Russia’s nationwide economic growth may suffer an entire point in losses – another blow to the recovery effort from the worst recession in 15 years.

Total auto sales are up 9 percent for 2010 compared to their 2009 levels, which on an annualized basis were cut in half compared to 2008.

link:

http://www.leftlanenews.com/russian-auto-sales-jump-45-percent-in-june-july.html