Deliveries of passenger cars and light commercial vehicles in Russia shrank 5% to 152,100 units in October, the Moscow-based Assn. of European Businesses reports.
Sales improved for market leaders Lada (+5% to 32,300 units), Kia (+1% to 19,800) and Renault (+5% to 12,500). But sales declined at Hyundai (-3% to 15,400 cars), and among seven of Russia’s 15 second-tier brands.
October’s slump marks the seventh continuous month of year-on-year sales decline. AEB notes that the shrinkage—mainly among the market’s smaller players—has been eroding gains made in 2017-2018 as the market recovered from a collapse over the previous four years. A glum AEB says it sees nothing coming anytime soon to break the retrenchment.
Annual sales in Russia slid from a peak of 2.94 million units in 2012 to 1.42 million in 2016, according to AEB. By the end of last year, volume had climbed back to 1.80 million.
But AEB says sales this year have fallen steadily since April. Total volume through the first 10 months of 2019 was 1.42 million vehicles, down 2% compared with the same period in 2018.
Once the playground of exotic car makers, the definition of a niche vehicle has expanded to include image vehicles for mainstream OEMs, and specialist models produced on high-volume platforms.
Chinese electric-car startup Nio Inc. is forming a manufacturing joint venture with Beijing E-Town International Investment and Development Co., which is investing 10 billion yuan ($1.5 billion) in the business.
Dan Nicholson is vice president of General Motors Global Propulsion Systems, the organization that had been “GM Powertrain” for 24 years.