Renault remains bullish of slumping Russian car market

Article by Christian A., on August 31, 2014

The Russian car market is currently experiencing a crisis, and the pain is being felt more by carmakers that have more stakes in the country. One of carmakers is Renault, who along with Nissan controls AvtoVAZ, the largest vehicle manufacturer in Russia. But with Russia planning to launch an incentive scheme to boost demand and having more local suppliers, Renault could find itself benefitting from the situation.

Renault, Nissan and AvtoVAZ are just some of the carmakers unveiling new models at the Moscow auto show this week while increasing tensions between Russia and the West have led to a significant drop decline in Russian car sales.

While not dismissing possible production cuts if the slump continues, Renault's Russia chief Bruno Ancelin said he is not planning to review or postpone vehicle development, as he believes that a prior move to invest in 2009 was justified when Russia transformed into one of the carmaker’s most profitable markets in the next years.

"Now isn't the time to make bad decisions not to do things," Ancelin told Reuters in an interview. He said that when the market is disrupted is the best time to invest.

The Russian car market posted a 10-percent drop so far this year, and things are expected to get worse after a passenger plane was shot down over Ukraine, triggering new Western sanctions against the country’s banks and oil sector. LMC Automotive is expecting car sales in Russia to drop 15.8 percent in 2014, instead of the 10.5 percent previously projected.

Topics: renault, russia

If you liked the article, share on:

Comments

Recommended

There is an ongoing rumor going around the automotive community, and it’s aimed at BMW. The rumor? The German marque has reportedly axed the i5 Electric vehicle concept. These supposed...
by - May 29, 2017
Volkswagen's yearly Worthersee affair that happens in Austria is considered a hotbed for all types of cars from the German company's long and renowned history. Most of the gathering features...
by - May 29, 2017
Behold, the Rolls-Royce Sweptail! The Sweptail is probably the biggest two-seater car that has ever been built. It may look odd at first glance, and you may not be fond...
by - May 29, 2017
BMW just keeps on getting bigger and bigger, in terms of their lineup I mean. Just after unveiling the 8 Series Concept, they are now teasing us with an M8...
by - May 29, 2017
Ford's prized SUV, the Ford Expedition, is considered as a popular pick in the full-sized SUV category. Now, the American automaker has implemented a timely redesign to its most valued...
by - May 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries