Russia's car sales jump by 37% in 1H21

Russia's car sales jump by 37% in 1H21
After a terrible year in 2020, auto sales bounced back in June, up 28% y/y on low base effects, but also ahead of the last six years in absolute terms in June.
By bne IntelliNews July 7, 2021

The sales of cars and light commercial vehicles (LCVs) in Russia in June increased by 28% year on year to 0.158mn units, and by 37% y/y to 0.87mn vehicles in 1H21 overall, according to a report from the AEB Automobile Manufacturers Committee (AEB AMC) that oversees the industry.

This shows positive improvements in the market versus the previously seen trend of falling automotive sales, short supply of new cars and rising prices previously reported by bne IntelliNews.

"As earlier stated, the market shows better dynamics than expected," AEB's chairman Thomas Staertzel commented. 

AEB notes that the postponement of the disposal fee increase supported the market and helped slow the rise in car prices. Although the coronavirus (COVID-19) situation is worsening, the analysts at AEB hope that a complete lockdown will be avoided. 

"Despite the difficulties with the semi-conductors' supply and metal prices increase, we believe a drop down in 2021 sales [will be prevented] and we will see corrections in the months to come," AEB wrote.

Notably, the improved outlook on the car market had AEB improve its full-year 2021 sales forecast from a 2.1% to 9.8% increase.