Page 130 - RusRPTMay21

Among other Russian producers, GAZ's LCV sales fell 4% y/y to 4,521 units in March and were down 11% y/y to 9,873 units in 1Q21.
Ford is set to become the first automaker to launch mass production of electric vehicles in Russia, the Kommersant newspaper has reported. The US car giant, through a joint venture with Russian firm Sollers, will start making electric versions of its Ford Transit vans at a plant in Russia’s republic of Tatarstan from 2022, a company representative told the paper. Sollers expects around 4% of the light commercial vehicle market in Russia to be made up of electric vehicles by 2025 and is lobbying the government to boost support for electric vehicles in Russia’s major cities. It has suggested dedicated road lanes, toll-free travel and unrestricted access to city centers — schemes already adopted in various other cities around the world. The plant will be the first in Russia to produce electric vehicles for the mass market.
Automotive sales are falling, new cars in Russia are in short supply and prices are rising, Kommersant reported on April 2.
Sales of passenger cars and light commercial vehicles in Russia in March fell by 6% year-on-year, Kommersant calculated based on a survey of market participants with 70% of sales. The Association of European Businesses (AEB) has yet to release its widely followed monthly update of statistics, but found in January there was a fall of 4.2% and in February only a small increase of 0.8%.
Where the market is heading is shown by the statistics of the sales leader, AvtoVAZ. The concern sold in March only 3% more cars on an annualized basis (33,800), while in February the growth was 13% due to the (already exhausted) program of preferential car loans.
The shortage of cars on the supply side is caused by the global crisis with the supply of automotive microchips, which is already leading to the shutdown of car factories. The physical availability of cars has decreased, according to car dealers interviewed by the publication. They named Toyota, BMW and Mercedes-Benz from specific brands, but in principle the deficit spread to all brands.
There are improvements in individual models and trim levels, but it was difficult to predict which ones. The numbers also fell because of the high base effect of March 2020, when the Russians were buying up cars, due to the sharp devaluation of the ruble.
In March, dealers noted “consistently good demand,” but the situation may change in April due to higher prices. Since the beginning of the year, cars have already risen in price by 2-5% due to the effects of devaluation, and since April dealers have been raising prices by about the same, citing an increase in the utilization fee.
130 RUSSIA Country Report May 2021 www.intellinews.com