Boston Consulting Group has released a study that predicts that Russia will be the largest auto market in Europe and the fifth largest in the world by 2020 with 4.4 million auto sales a year by then, up from 2.9 million annually as of 2012. The report predicts that the Russian market will grow by 6% each year through 2020.
To get the boost in sales, the analysts predict that more local auto production will move to Russia, which has already happened for Volkswagen and Renault. Last year was the first year that foreign automakers produced more cars in Russia than they imported cars.
"Fundamentally it is an attractive market in terms of cars per thousand inhabitants and therefore we are bullish long-term - but that doesn't mean that every year will be a good year," said Ewald Kreid, the study’s co-author.
Russia is currently the seventh largest auto market in the world and ranks just behind India. The country’s huge number of buyers and low car ownership is seen as the major factor behind its growth.
To help the market grow, the report says that Russia needs to improve logistics and stabilize the market.
The Russian market is currently in a four-month slump, and auto sales are down slightly from last year. However, the government is pushing through measures to stimulate cars sales.
Source: Automotive News Europe
Russian Auto Market Forecasted to Be Largest in Europe by 2020 :: News :: autoviva.com