Auto manufacturing firms that are affected by the recent reductions, and dismal overall sales estimates all over Europe and even beyond, are very optimistic regarding an auto marketplace that is normally considered as a very testing place to do productive business – Russia.
Carmakers are upbeat about an automotive market anticipated to turn into biggest market in the Europe by 2014, with many firms preparing to invest several billions of dollars to extend production facilities, in spite of the nation’s long-standing repute for a heavy bureaucracy, corruption, inconsistency, and unpredictable regulation.
Most recently, during the Moscow International Auto gathering, the France based Renault SA’s Chief Operating Head of for the Russian operation, Denis Le Vot, stated that the Russian auto market is really huge, and the company observes no major reason why it shouldn’t continue to expand.
With overall product sales slowing down literally to a crawl, both Sweden based Volvo Car Manufacturer, and Italy’s Fiat SpA have recently declared reductions in their vehicle productions, while both automakers’ top executives perceive Russian market as a vital component in their present worldwide strategy to improve their sales and profits.
Many firms utilized the Moscow Auto Show as a center stage for launching their new models globally. Unveiling a new revised Astra sedan, Alfred Rieck, who is Opel’s Sales and Marketing Chief, announced that both Russia and Moscow markets are extremely important to them.
The overall sales for GM in Russia have been increased by almost more than three times since the 2009 model year, and the automaker aspires to market nearly 80,000 vehicles in the nation this year as well, with most of the models developed at its production located outside St. Petersburg.
As per the recent stats that are revealed from the leading Russian based consulting company, PricewaterhouseCoopers, the overall industry sales in the market has been improved by 70 percent to around $60 billion during the previous year. Many executives expressed that the recent compelling dynamics of the customer marketplace in Russia has trumped many other concerns including cumbersome bureaucracy.
They also clearly figured out the fast progressing middle class sector in the country, and the truth that approximately 33 percent of vehicles that are present on the road are almost 15 years old, which indicates a vehicle ownership ratio of 200/1000 people.
On the whole, it is quite clear that the Russian market possess huge potential from the growth aspects of the automotive industry, which is presently drawing more automakers to make considerable investments here.