• Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer
Saturday, June 3, 2023
Salt Lake City Metro News
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Videos
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Videos
No Result
View All Result
No Result
View All Result
Home News Local News

Russian Car Sales Have Collapsed Since The Invasion Of Ukraine

by NewsReporter
April 6, 2022
in Local News
Reading Time: 3 mins read
russian-car-sales-have-collapsed-since-the-invasion-of-ukraine
Share on FacebookShare on Twitter

London (CNN Business)Auto sales in Russia plummeted by almost two-thirds in March, as the war in Ukraine, Western sanctions and an exodus of foreign businesses wreaked havoc on the country’s economy.

Just 55,000 new cars and light commercial vehicles were sold in Russia last month, down 63% from March 2021, according to data released Wednesday by the Association of European Business (AEB), a group representing foreign investors in Russia.

All brands — European, American and Asian — suffered losses, but the hardest hit among the big sellers were Volkswagen, whose sales fell by 74%, followed by the German group’s Škoda brand and Toyota (TM). In February, overall sales fell just 4.8%, association data showed.

    Lexus, Toyota’s luxury brand, also took a severe hit: Sales collapsed 91%, the most of any make. Porsche, also part of the Volkswagen (VLKAF) group, saw its sales slump by 73%.

      Western carmakers ran for the exit following Russian President Vladimir Putin’s decision to invade Ukraine in February. Toyota and Volkswagen were among a raft of companies to announce last month that they had stopped production and halted exports to the country.

          France’s Renault, which owns Russian carmaker AvtoVAZ, recently said it was suspending all activities at its Moscow factory, and “assessing the available options” regarding its stake in the company.

          The collapse of the ruble also pushed the average price of a new car in Russia up by between 35% and 45% in March, according to Russian car market analytics website Autostat.

          But splashing out on a new car will likely fall low on most Russians’ list of priorities. Since the invasion, annual inflation in Russia has surged to nearly 16%, Reuters reported. The price of staple goods, including sugar and tomatoes has shot up, and there have been reports of shortages in supermarkets after a spate of panic buying.

          An opening for China?

          Domestic car models like the AvtoVAZ-owned Lada — an icon of Soviet-era self-reliance — could, in theory, stand to benefit from the absence of foreign competition. But sanctions have snarled supply chains, leading to a severe parts shortage.

          The company has brought forward a company-wide summer vacation to April, and announced it will move to a 4-day week for three months from June to try to save the jobs of more than 40,000 employees. The company says it is also designing new versions of several Lada models to be less reliant on imported parts.

          Chinese carmakers could capitalize on the departure of Western brands, said Carol Thomas, central and eastern European analyst at consultancy LMC Automotive.

          “Chinese brands will no doubt see the current situation as an opportunity and there is a chance more will look to establish a Russian production base in the future,” she said.

            China’s Great Wall Motors and Geely saw strong growth in sales in Russia over the first quarter as a whole, and suffered narrower losses than Western rivals in March.

            — Clare Sebastian and Chris Liakos contributed to this report.

            Read More Here

            Salt Lake City Metro News

            © 2021 Salt Lake City Metro News

            Navigate Site

            • Disclosure
            • Privacy Policy
            • DMCA Policy
            • CCPA
            • Medical Disclaimer

            Follow Us

            No Result
            View All Result
            • Home
            • DMCA Policy
            • Medical Disclaimer
            • Privacy Policy
            • Disclosure
            • CCPA
            • Terms of Use

            © 2021 Salt Lake City Metro News

            We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
            Cookie SettingsAccept All
            Manage consent

            Privacy Overview

            This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
            Necessary
            Always Enabled
            Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
            CookieDurationDescription
            cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
            cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
            cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
            cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
            cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
            viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
            Functional
            Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
            Performance
            Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
            Analytics
            Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
            Advertisement
            Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
            Others
            Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
            SAVE & ACCEPT