Sales of new cars in May fell by 28.3% a year by the year
A small increase in demand for new cars in April, as expected, turned out to be short -term and was replaced by a fall in sales in May. To accelerate the market, in addition to a high rate and chosen demand, has prevented a large number of holidays. Dealers hope that June will be no worse than April, and sales will support a legal entity and a strong ruble.
Sales of new cars in Russia in May decreased by 10.7% in relation to April, to 91.22 thousand pieces, calculated in Avtostat. In annual terms, according to the agency, the implementation decreased by 28.3%. The main reason for the drawdown is a large number of holidays in May, dealers and experts surveyed by Kommersant are sure. In addition, the previously chosen demand and high credit rates remain containing factors, which are more likely to save funds on deposits than to spend.
In January – May, sales were reduced by 26%, to 440.26 thousand pieces, they specify the agency.
The leader of the car market in May, according to Avtostat, remains LADA; Brand sales decreased by 10.3% by April, to 25.55 thousand pieces. In second place is the Chinese Haval, the sales of which were reduced by 17.8%, to 10.62 thousand pieces. TOP-3 closes CHERI with a result of 9.78 thousand pieces, which is 10% less than the previous month. The most popular models in the market of new cars in May were Lada Granta, Lada Vesta and Haval Jolion.
According to Andrei Olkhovsky, CEO of Avtodom, in May, contrary to reducing the market, traffic growth and higher activity of citizens were fixed in the company’s dealerships in a number of brands than in April. “This could be pointed, taking into account the large marketing support of some brands,” he said. Autostat CEO Sergey Tselikov recalls that in the spring discounts were offered for cars of many brands: in particular, Chinese BAIC, Kaiyi, SWM, Bestune, Hongqi, produced in Russia Xcite and Solaris. The time of the most profitable offers ended, the number of discounts on the market is gradually reduced, Mr. Tselikov believes. But Andrei Olkhovsky clarifies that the volume of discounts in the market does not decrease, but their format is modified. “Brands do not want to give direct discounts so as not to depreciate their brand, but it is quite obvious that a number of brands of the mass segment are already very close to the cost of AvtoVAZ models,” says the top manager. The director of retail sales Avilon, Ilya Petrov, is sure that in June a sharp reduction in discount offers is not expected: a low vacation season begins for an auto business.
The situation with overstraging, which spurred discounts in car dealerships, has not yet improved, most of the “Kommersant” interviewed dealers and experts.
“The market is still much exceeding demand in the market,” says Andrei Terluukevich, general director of Avtopets Center Group of Companies. He, like Mr. Olkhovsky, estimates the stocks of cars for most brands at the level of six to seven months of sale. In general, the drain continues to stay at about a mark of 500 thousand cars, says Sergey Tselikov. As analysts explain, this is due to an increase in the production of cars in the country (by 8.3%, up to 246 thousand pieces in January -April, according to Rosstat) and import, which, although not in such a large volume, continues, while demand is quite low. However, the situation with drains is very different from the brand to the brand, the industry participants agree. “Someone in the remains of reserves for ten months of sales, and someone already has a slight deficit for individual models,” said Andrey Terlukevich. Mr. Petrov also predicts a small deficit of some models by July-August, but which one does not disclose that.
In June, dealers and experts diverge in June market estimates, but they are unanimous that this month is not the most active in terms of sales due to the vacation season. The most pessimistic forecast for Avilon: according to Mr. Petrov, sales will fall by 5–8% relative to May. Andrei Terlukevich and Sergey Tselikov expect from June the results similar to April, that is, about 102 thousand pieces. Mr. Olkhovsky recalls that June is the end of the second quarter, so the activity of the legal entities is likely. In addition, sales can spur a “very comfortable currency course”, he expects.
