Russia may pass Germany to become the largest auto market in Europe this year, according to the most recent semi-annual report on the Russian Automotive Market from PricewaterhouseCoopers LLC (PWC).
|Projected sales volume in largest EUropean markets. Click to enlarge.|
For the first half of 2008, Russia has already edged past Germany in terms of sales volume. During the first six months of 2008, auto sales in Russia rose to 1.645 million units—a 41% increase in comparison with the same period the previous year—compared to 1.63 million units in Germany, said Stanley Root, leader of PWC’s automotive practice in Russia.
The Russian market not only continues to rise in quantitative terms, but growth rates are also accelerating. The average car price also continues to grow, in part because of the increasing share of relatively expensive new car imports. In dollar terms, the Russian auto market grew 64% in the first half of 2008 to $33.8 billion.
Over the next eight years, Root said, Russia could more than double its domestic car output to 3.2 million units. Russia potentially could contribute more than 30% of the growth in monetary terms in the BRIC (Brazil, Russia, India, China) auto market over the next eight years.