Russia’s automobile market could grow by approximately 12 percent this year, recovering faster than formerly expected because of the enhancing economy, the head of Kia Motors’ Russian business informed Reuters on Friday.
Alexander Moynov stated Kia had formerly seen Russian vehicle sales growing 5-7 percent this year, but now anticipates them to reach between 1.57 million and 1.60 million automobiles, compared with the 1.43 million sold in 2016.
Russia’s once-booming vehicle market turned into one of the most high-profile victims of a high economic decline in the last 2 years, with sales cutting in half from a peak of nearly 3 million a year in 2012.
But the market’s potential customers have brightened this year on the back of a nascent financial recovery and Moynov stated the Association of European Businesses (AEB) industry group would likewise lift its 2017 sales projection in October to about 1.57 million vehicles. The AEB projection 1.48 million in January. Kia is a member of the AEB’s auto committee.
Moynov stated at the Reuters Russia Investment Summit, that market growth was anticipated to continue in 2018, with sales forecast at up to 1.8 million vehicles.
“We think there will be a favorable dynamic in macro-economic aspects which will have an influence on customer earnings,” he stated at the summit, held at the Reuters office in Moscow.
“We also hope financing will establish as it is now returning as one of the important drivers, and we hope that state support will be kept next year.”
Kia and its affiliate Hyundai Motor concentrated on low prices to boost market share throughout the slump, effectively plying their low-cost however reliable cars to progressively cash-conscious Russians.
Kia represented 11.9 percent of Russian car sales in January-August this year, as per AEB data, up from 10.4 percent in the same duration in 2016.
“We have set ourselves the goal of increasing market share … All decisions are directed towards this plan,” Moynov stated. “If we manage 12 percent market share (by the end of the year), that is good.”
