Vehicle Sales Continue to Crash in Russia

Sales of new cars and light commercial vehicles in Russia, which contracted 36% in 2015, plunged 29% to 81,800 units in January, according to the Moscow-based Assn. of European Businesses.

The decline was considerably sharper than AEB predicted last month, when it forecast sales in 2016 would shrink only about 4%. The group says January sales in Russia are never a reliable indicator of full-year results. It remains hopeful that government incentives will help offset the inflationary effect of Russia’s weak currency.

January deliveries for the market's top sellers fell by double-digit rates compared with January 2015, when the market contracted 24% compared with the same month in 2014.

Last month's volumes plummeted for Lada (-11% to 15,600 units), Kia (-20% to 9,000), Hyundai (-37% to 8,000), Toyota (-15% to 6,100), Renault (-43% to 5,000), Nissan (-51% to 4,500) and Volkswagen (-28% to 4,400).