VLADIVOSTOK, September 6. / TASS /. Passenger car sales in Russia in 2019 are expected to be at the level of last year, growth is not forecasted due to a decrease in real incomes of citizens, Mazda Sollers Manufacturing Rus CEO Dmitry Kudinov told TASS on the sidelines of the Eastern Economic Forum (EEF) on Friday.
"This year there will be no growth relative to last year. Last year, we had moderate optimism, and there was a market growth of up to 1 050 000 new cars sold last year. It will be either the same or slightly less. This is because we are seeing a decrease in real disposable income, he said. Sales of cars and LCVs (light commercial vehicles) in Russia in January - July fell by 2.4% to 968,700 cars, according to the Association of European Businesses.
Earlier, Russian Minister of Industry and Trade Denis Manturov also confirmed that the decrease in car sales is linked to the decline in real income of Russian citizens. "The main reason for the decline in sales of new cars lies in the decrease in real income of the population," Manturov said, noting that starting on July 1, 2019, the ministry extended the state support for the Russian car market through the preferential car loans and preferential car leasing programs.
The minister also reminded that 10 billion rubles have been allocated for these purposes - 6 billion rubles for social programs "First Car" and "Family Car" as part of preferential car loans and 4 billion rubles for preferential leasing of commercial vehicles. According to Manturov, this will allow for the additional sale of more than 75,000 units in 2019. "A program to stimulate demand for gas engine equipment with a budget of 2.5 billion rubles will also continue," he said.
The fifth Eastern Economic Forum is held in Russia’s Far Eastern city of Vladivostok on September 4-6. The Roscongress Foundation is the organizer of the event. TASS news agency is the event’s general information partner, the official photo hosting agency and moderator of the presentation zone focusing on the Russian Far East’s innovation opportunities.