We can't expect any major breakthroughs in the automotive industry

4 march 2019 | Business-gazeta.ru

"The Ministry of Economic Development forecasts rather modest GDP and household income growth, so we can't expect any major breakthroughs in the automotive industry," Business-gazeta.ru quotes Analytical Center expert Grigory Mikryukov as saying. "According to one estimate, over the next year the car market is going to grow by about 5 percent and in 2020 it will grow by 3 percent."

Grigoriy Mikryukov
Grigoriy Mikryukov
Department for Sectors of Economy

"The analytic noted that state support for the purchases of new cars will be reduced as well," the publication writes. The expert believes that this year the state support is no longer going to play a decisive role.

According to Mr. Mikryukov, the state is cutting back its support for the automotive industry, and will be provided within narrowly targeted projects. Thus, in research and development the state plans to support the development of remotely-piloted vehicles; promoting environmentally friendly modes of transport, such as e-vehicles, is also regarded as a priority.

Last year the automotive market grew at a fairly brisk pace of 11.9%, the expert said. Light commercial vehicles and trucks are lagging behind.

According to the expert, the market is slowly but surely recovering from the 2015 crisis when new vehicle sales plummeted by 36%, and the 2009 crisis when they tumbled by 50%. "What's next? A key factor here is household income, especially if we are talking about car sales," Mr. Mikryukov concluded.

Source: Business-gazeta.ru