Russia on pace to top Germany as largest European car market

Article by Anita Panait, on July 20, 2013

Russia is on pace to surpass Germany as the largest auto market in Europe and fifth globally by 2020, according to a Boston Consulting Group report said. Western carmakers like Ford, General Motors, Renault and Volkswagen have made significant investments in Russia, wagering that the market will increase as a rising number of middle class Russians make their first car purchase or replace their old units.

The report expects that Russia can follow China and Brazil in transforming itself into a market dominated with locally produced vehicles. Boston Consulting expects the Russian auto market to grow by an average annual rate of 6 percent through 2020, when it is expected to hit will annual sales volume of 4.4 million. By then, Russia would become the fifth largest auto market in the world in terms of sales, next to China, the United States, India and Brazil.

In 2012, Russia was seventh globally in terms of sales next to China, the U.S, Japan, Brazil, Germany and India. The car-to-inhabitant ratio in the country is currently 290 cars per 1,000 Russians, while the ratio is 560:1,000 in Western Europe. Likewise, many of those vehicles in Russia are aged.

Ewald Kreid, one of the authors of the report and a partner at BCG, remarked that Russia is an attractive market in terms of cars per thousand inhabitants, thus they are “bullish long-term.” He remarked that doesn't mean that every year will be a good year for car sales in Russia. [source: automotive news - sub. required]

Topics: russia, germany

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 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