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Automotive market in Russia: the situation is to improve

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Despite the serious decline in the new vehicle market in Russia, ROAD registers positive changes.

According to the experts, government programs will support the market. Preferential car lending program began in April and although the number of vehicles purchased under this program is not so great (19,125 vehicles), the ratio of received and approved credit applications (105,000 applications received, 57,000 of them approved) gives the hope for the future. "The percentage of the banks’ approvals of about 54% can be considered good. However, if this figure increases up to 70%-75%, the market effect of the program will be more considerable, it will enable to stop the decline in the sales of low-cost and mid-segment vehicles", - ROAD press release states. 

Moreover, ROAD considers the aftermarket to be very promising and plans projects aimed at increase in used vehicle sales through authorized dealer centers. 

Experts believe that the decrease in the interest rate of Central Bank of Russia to 12.5% is a positive factor. "Reduction of the interest rate will increase credit availability and improve the market activity and consumer confidence. However, further reduction of the rate to 10% is necessary, "- Vladimir Mozhenkov, President of ROAD Association said.

Source: www.autostat.ru

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