Car sales in Russia began to fall in July

Car sales in Russia in July began to decline in annual terms, follows from the data of the Association of European Businesses. The market still shows modest growth by the pre-crisis 2019 and a pronounced one by the crisis 2020.

• Sales of new passenger cars and light commercial vehicles fell 4.1% year-on-year to 136,040 units in July.

• In January-July, 957,160 cars were sold, which is 28.9% more than in the same period last year. The decrease on a monthly basis is due to the current shortage of cars and a high base in July 2020, when pent-up demand after the quarantine materialized.

• Compared to July 2019, the market grew by 2.4%.

Further adjustments can be expected in the coming months due to the limiting effects of global production cuts due to shortages of electronic components. The full-year forecast, updated in July, assumes sales growth of 9.8% to almost 1.8 million vehicles.

AvtoVAZ remains the leader of the car market, its July sales grew by 3% to 32,000 cars. In the top 3, in addition to the traditional Russian company KIA and Renault, the top 10 is closed by the Chinese Chery with 3 thousand cars sold per month.

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According to dealers' data, Kommersant estimated sales drop in July at 10% in conditions of deficit. About why in such conditions the state will not renew preferential auto insurance, we wrote here .