Russian Automotive Industry: Boom Or Bust?
- By:James Marriot
Moscow recently hosted the 15th International Automotive Conference, which discussed the main developmental trends in the Russian automobile market. It is estimated that Russia's auto market volume will rise to about $30 billion.
The shows that since 2002 car sales in Russia have tripled, and it now sells nearly the same number of cars as UK. Foreign & Russian car sales sum up to $20 Billion & $10 Billion, respectively.
It's rather tough to believe that the domestic market may not show this type of record-breaking growth yet again.
But till now automobile market in the country has not become saturated due to Russia being a big country. According to a plan approved by Russia's Economic Development & Trade Ministry an estimated $2 Billion will be invested in foreign cars.
Carmakers in western countries are planning to grow their businesses on the fast developing Russian market. The car market may develop soon as many foreign co. will be producing & selling more than 100,000 cars in the year 2007 alone.
As per the RNCOS report "Russian Automotive Industry Forecast (2006-2011)", several conditions have to be met in order to attain this goal; otherwise the market will develop much slower. Fuelled by booming economy and political stability, the automotive industry in Russia has grown at an exemplary speed in the recent years. With the production of 120mn vehicles in 2005, Russia was ranked as the thirteenth largest manufacturer of vehicles in the world.
For further information about Russian Automotive Industry please read the report "Russian Automotive Industry Forecast (2006-2011)" published by RNCOS at http://www.rncos.com/Report/IM036.htm
RNCOS is an industry leader in the field of online business research. We specialize in industry research on various business verticals. To read our other reports, please visit us at http://www.rncos.com/Report.htm or email us at info@rncos.com.
To get the latest news visit our newly launched Blog section at http://www.rncos.com/Blog/