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Delhi, New Delhi, India, 2007/10/17 - Russian auto industry sold record number of cars, both local and foreign. But foreign brands are augured to outpace the local ones in short-term due to Russia’s WTO accession. RNCOS report studies the market in detail.
The leading market research consulting services company RNCOS has recently come up with its new report on the Russian automobile industry, “Booming Russian Automobile Sector”. The report is an extensive work on the Russia’s burgeoning auto industry and predicts that car sales in the country would rise at a CAGR of over 17% from 2007 to 2010. Also, foreign cars will make their place in the market and run at an AAGR of over 25% during the same period. But this is just a part of the rational future forecast given in the report that also covers other auto segments like commercial vehicles.
The recent data of the Automobile Manufacturers Committee (AMC) of the Association of European Businesses (AEB) in Russia supports the RNCOS findings. AMC reported that foreign cars’ sales in the nation climbed up by huge 66% on YOY to over 1.5 Million in just eight months, from January 2007 to August 2007.
The RNCOS report has recognized growing disposable incomes, continuous development of consumer financing schemes, and amending credit conditions as the growth-inducing factors for the transcontinental country.
According to the report, the accession of Russia to the World Trade Organization (WTO) in 2007 will also significantly impact its auto industry. Being a member of the WTO, Russia will have to cap its import duty on new cars at 15% from the current 25% of the car price during 2008-2015.
Moreover, Russia has made auto parts duty-free, which is holding back the auto-manufacturers to forge business relations with Russian component makers.
Among other reasons cited by the RNCOS report for this concrete sales growth in the foreign cars is the competitive nature of foreign brands; qualitatively, these cars are tough competition to their local rivals. But the competition has given the Russian industry a reason to consistently upgrade its production line.
“Booming Russian Automobile Sector” gives a segment-wise (passenger cars, commercial vehicles, tractive units, and buses) current and past scenario of the Russian auto industry, subsuming production, sales, import and export. Apart from that, the thorough industry analysis, including drivers, opportunities, and challenges for the industry, will help the clients in understanding the demographics, customer behavior, economic and financial condition, finance industry, fuel condition, infrastructure etc. and thus, will be proved useful in designing strategies to venture into the market.
RNCOS, incorporated in the year 2002, is an industry research firm. It has a team of industry experts who analyze data collected from credible sources. They provide industry insights and analysis that helps corporations to take timely and accurate business decision in today's globally competitive environment.