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Research and Markets: Russian Automotive Market Outlook in 2008 - 2010: Impact of Economic Slowdown on the Future of Auto Sales and Production

DUBLIN--Research and Markets (http://www.researchandmarkets.com/research/013536/russian_automotive) has announced the addition of Frost & Sullivan's new report "Russian Automotive Market Outlook in 2008 - 2010: Impact of Economic Slowdown on the Future of Auto Sales and Production" to their offering.

This Frost & Sullivan research service titled Russian Automotive Market Outlook in 2008 - 2010: Impact of Economic Slowdown on the Future of Auto Sales and Production provides an overview of the effects of the economic slowdown on the automotive market in Russia and offers projections for 2009 and 2010. The research explains the current trends in terms of vehicle production and sales across the passenger cars, commercial vehicles and buses segments in Russia.

Market Overview

Sales of Light Vehicles to Boost the Russian Automotive Market by 2010

Issues such as production overcapacity, high inventory and low profitability, triggered by the economic slowdown, have affected the Russian automotive market. However, sales of light vehicles are expected to facilitate the recovery of this market by 2010. Although the recovery period is expected to be challenging and cumbersome, the upturn of the financial sector, the Russian Government's support for the country's automotive market and enhanced consumer expectations are poised to lead to market sales recovery. "Low credit availability and the frozen or falling disposable income of Russians are pushing down automotive sales in Russia, which is expected to contract at a compound annual growth rate (CAGR) of around 9 per cent between 2007 and 2010," says the analyst of this research. "Russian commercial vehicles manufacturers are likely to be more affected by the economic crisis than passenger car manufacturers, as the economic slump evolves and penetrates further into other sectors of the Russian economy." Only combined efforts by Russian original equipment manufacturers (OEMs), the Government and financial institutions will boost market sales in the light vehicle segment and support Russian consumers in their decision to acquire new vehicles by 2010.

Automakers are burdened with a huge pile-up of inventory, due to low demand, and have had to significantly curb their vehicle production plans and profitability targets for 2009. The uncertainty surrounding economic recovery and continued lack of sufficient credit in the market are hurting sales and consumer confidence - key requirements for a rebound in sales. "Light vehicles sales fell by more than 10 per cent in December 2008, resulting in huge losses for vehicle manufacturers and erosion of shareholder value," states the analyst. "OEMs are facing a challenge in working with suppliers and dealers, who are also in a difficult situation due to the economic recession in Russia."

OEMs should continue to work with the financial sector and dealers to support the demand for low-cost cars in Russia. "With almost 30 per cent of OEMs' turnover from low-cost cars sales in 2008, it is crucial for the Russian automotive industry to expand credit availability and financial flexibility for Russian consumers," concludes the analyst.

Key Topics Covered:

1. Global Automotive Market Overview

  • 1.1 Global Automotive Industry Outlook
  • 1.2 Global Automotive Market - Road to Recovery
  • 1.3 Key Trends in the Global Automotive Market

2. Russian Automotive Market Overview

  • 2.1 Russian Automotive Market: the Good, the Bad and the Ugly
  • 2.2 Passenger Car Sales and Production in Russia in 2008
  • 2.3 Passenger Car Sales and Production by Brand
  • 2.4 Sales Structure of New Foreign Vehicles by Brand in 2008
  • 2.5 Top 8 Foreign Models on Russian Market
  • 2.6 OEM's Turnover by Vehicle Price Band
  • 2.7 Russian Commercial Vehicles Production
  • 2.8 Russian Bus Production

3. Future Outlook of the Russian Automotive Market

  • 3.1 Economic Factors Impacting Russian Automotive Industry
  • 3.2 Environmental Regulations and Norms in Russia
  • 3.3 Government Measures to Support Automotive Market in Russia
  • 3.4 Russian Automotive Market - Scenario Analysis and Forecasts
  • 3.5 Key Conclusions

For more information visit http://www.researchandmarkets.com/research/013536/russian_automotive