Potential of the domestic auto industry exceeds the consumer demand today, and cars pile up in warehouses

31 march 2015 | Rossiyskaya Gazeta

The Domestic car market is rather alive, experts say. Of course, we can not write off the decline in production. But if we consider the development of the market in terms of expanding the product line, increasing the quality of the equipment, increasing its reliability and service life, environmental class, the use of alternative motor fuels, that is a progress.

Mikhail Nizov
Mikhail Nizov
Department for Sectors of Economy

"Rossiyskaya Gazeta" cited Mikhail Nizov, the Head of the Directorate for Transport Economics of the Analytical Center, who believes that Russia's automotive industry could not meet the consumer demand in the number and the range of technology before, and today the potential of the domestic auto industry exceeds the consumer demand, and cars pile up in warehouses. "However, if plants did not pay much attention to the cost, profitability and competitiveness earlier, and the consumer tried to buy anything - just to get it,  today consumers have specific requirements for production, based on the abundance of offers of manufacturers from all over the world. And Russia's auto industry simply has to make advances to respond wishes", said the expert.