New car sales plummeted by 102,000 vehicles in April, the largest monthly car sales decline in history in Russian, according to the Association of European Business.
During April, Russia introduced strict quarantine measures because of the coronavirus, causing car sales to fall by 102,089 units, or 72.4%.
After strong sales in March, dealers have had to suspend or restrict their activity.
“Black April” has dealt a strong blow to dealer cash liquidity, and seriously affected stability during middle-term period. The dealers are preparing to restart their business in May; however, they don’t expect significant sales growth.
AutoVAZ , the largest Russian car manufacturer, reported sales declined by three times in April over March.
Some analysts forecast car sales in Russia will drop 20%-50% in 2020. Read More.
PSR Analysis: The Passenger Car Segment will be one of the segments in Russia most affected by the crisis. Current quarantine restrictions are reducing personal income. On the other side, State support measures in this segment are generally limited to subsides provided to banks, covering credit interest only, and some protectionist measures. So, the pessimistic forecast of 50% sales drop seems reasonable. Nevertheless, despite the fall, the Russian car market is in second place in Europe (after Germany) by sales volumes during April. PSR
Maxim Sakov is a Market Consultant in Russia for Power Systems Research
