Car Sales Grow 6% in Russia

Deliveries of passenger cars and light commercial vehicles in Russia climbed 6% to 175,200 units in December, says the Moscow-based Assn. of European Businesses.

Full-year sales zoomed 13% to 1.80 million vehicles, the market’s largest volume in three years. The Russian market peaked at 2.97 million units in 2012.

Market leader Lada saw demand jump in December 9% to 35,400 units and 16% to 360,200 vehicles for the year.

Deliveries by second-place Kia surged 37% to 18,100 units last month and 25% to 227,600 vehicles for the year. Third-place Hyundai hiked its full-year sales 13% to 178,300 cars, but December sales advanced only 1% to 15,100.

AEB cautions that consumer tax increases and the threat of tougher U.S. sanctions could hurt sales, especially in the first quarter of 2019. The group predicts vehicle sales this year will grow a modest 4% to 1.87 million units, barring “drastic changes” in government policy.