New car sales in Russia will drop 24.2 percent this year after falling more than 10 percent in 2014, the Association of European Businesses lobby group said on Thursday, as the country's economy heads for recession. Car sales have fallen victim to Russia's weak economy, hit by Western sanctions imposed on Russia over the Ukraine crisis and low oil prices, and people have delayed making large purchases.
Joerg Schreiber, chairman of the AEB Automobile Manufacturers Committee, said demand would be hit this year by high inflation and interest rates, and because people rushed to buy cars last year to avoid inevitable price rises. Car manufacturers increased prices last year and this year after the sharp decline in the ruble, which fell 40 percent last year and has weakened further since.
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INC News, 15/01/2015 - via Moscow Time
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