Accounting firm PricewaterhouseCoopers expects car sales to increase by around 5 percent in Russia to around 2.9 million units in 2013. The forecasted figure, however, represents a slowdown from 2012, when car sales jumped 10 percent to 2.76 million. But the numbers are in sharp contrast to the car sales in Europe, which dropped to its lowest in the past 17 years.
Stanley Root, PwC's automotive industry leader for Russia, remarked that they expect a modest, measured growth in Russia in 2014, since the market was showing signs of stabilizing after a period of substantial expansion. PwC, however, expects slowing growth after next year to hit 3 percent annually from 2014 to 2017. PwC expects Russian car sales to reach zero growth by 2025, as it anticipates that the market will reach maximum level of annual sales at 3.7 million.
According to PwC, car sales growth in 2013 will be mainly boosted by foreign car brands built in Russia, which are expected to post a 9-percent jump in sales to 1.33 million units. PwC expects imports of foreign brands to soar 3 percent to 990,000, while sales of Russian car brand are forecasted to remain flat at 580,000 units. According to Root, the growth of the car sector in Russia will be slowed down by a new "recycling fee" imposed only on imported vehicles.
He noted that the development of the car scrappage industry was "key" to future growth in Russia, where car owners tend to used their units for around 16 years, long than the average in Europe. According to the figures released by the European automotive industry association ACEA, new-car registrations dropped 7.8 percent to 12.5 million vehicles in 2012 in Europe.