Auto market doing well in Russia
August 30, 2012
The auto industry has not been the best around Europe, but one market that has caught a lot of people's attention is the increase in auto sales in Russia, according to The Wall Street Journal.
The industry has seen an impressive 70 percent increase over the past year, reaching nearly $60 billion. It is believed to have something to do with the fast-growing middle class and roughly 33 percent of cars on the road that are 15 years old.
"The mood here is so positive, which is such a great contrast to what I saw in Geneva [at the auto show in March], where everyone was so depressed," a European auto executive told the news source. "I'm curious what we will see at the Paris show next month, but I expect it won't be much different."
Since Russia has been seeing such a boost in sales, General Motors will spend $1 billion in the next five years to improve output in Russia, and many are hopeful Russia will take the number two spot in the market in place of Brazil, Reuters reports.
"The situation is very different from Europe and the U.S., because you have a lot of people that have very old cars - or no car - [who] are entering the market for new cars," Renault's regional head Bruno Ancelin told Reuters. "It is a tank of potential customers that is still full and we have years and years in front of us to address this kind of customer."
You Might Also Like...
- United Russia nominates Prime Minister Putin for Russian presidency
- Russia denying direct involvement with Snowden, but refusing to extradite to U.S.
- Russian shuttle to bring men home from International Space Station is successful
- World's first liliger born in Russia
- Inaugural train from Russia to France embarked this week