PwC predicts growth for the Russian automotive markets in 2017

Interfax – New passenger car sales (excluding LCV) may increase by 7% in Russia in 2017, reaching 1.4 million units, according to a PwC survey.

Oil price forecast has become one of the main factors in the prediction of sales volumes, as noted by PwC. “According to the GI, the average price for Brent crude oil was $43.3 per barrel in 2016 and the price may rise to $55 per barrel in 2017 according to the consensus forecast of Bloomberg, which will stimulate new car sales” – as stated by the company.

Customer confidence level and demand stimulating measures taken by the government volume will also have effects on the development of the market.

Experts from PwC expect growth in Russian truck market as well in 2017, by 5% to 56,000 units (4% rise in 2016 to 53,000). While increasing pent-up demand and government support measures are amongst the main factors stimulating market growth, the rising vehicle maintenance costs are likely to have the opposite effect.

Russian bus market may grow by 8% in 2017, reaching 11,200 units (up by 15.4% in 2016 to 10,400), as expected by PwC. Fleet utilisation, preparations for major sporting events, alongside state procurement of buses will help maintain a stable demand in the segment.

New passenger car sales have shrunk by 12% in Russia in 2016, to 1.311 million units.