May Car Sales in Russia Plunge 38%

Demand for new cars and light commercial vehicles in Russia plummeted 38% to 125,800 units in May, the Moscow-based Assn. of European Businesses reports.

Sales through the first five months of 2015 also slumped 38% as volume fell to 641,900 units.

Deliveries were down dramatically for almost all carmakers last month, led by a 33% drop to 22,900 vehicles for market leader Lada. Sales plunged at Hyundai (-13% to 13,600), Kia (-27% to 12,400), Renault (-42% to 9,400), Nissan (-38% to 7,900), Toyota (-43% to 7,600) and Volkswagen (-48% to 5,600).

May results were no better for the market's top luxury brands. Sales fell at BMW (-40% to 2,100 units), Mercedes-Benz (-12% to 3,800), Land Rover (-48% to 900) and Audi (-37% to 1,900).

AEB optimistically reports "mild" improvement in customer activity that may be enough to slow the rate of year-on-year declines over the next few months. The group, which previously predicted full-year sales will drop 24% in 2015, plans to update its forecast in early July.