Auto Demand in Russia Drops 8%

Carmakers delivered 234,600 passenger and light commercial vehicles in Russia last month compared with 255,900 units in July 2012, according to the Moscow-based Assn. of European Businesses.

July marked the country's fifth consecutive month of year-on-year deterioration in sales. In the January-July period, auto volume slid 6% year on year to 1.57 million vehicles.

AEB blames slumping sales largely on Russia's cooling economic growth. But the group expects gradual improvement in vehicle demand in coming months, sparked in part by the government's new auto financing subsidies.

Most major carmakers posted double-digit volume declines in the country last month, including AvtoVAZ-Renault Nissan (-20% to 67,800 vehicles), VW Group (-10% to 24,700), General Motors (-21% to 22,200) and Ford (-11% to 9,300).

July sales in Russia were flat at Kia at 17,100 vehicles. Deliveries rose 3% to 14,800 units at Hyundai and 2% to 15,900 at Toyota.