Sales of cars and light commercial vehicles (LCV) in July rose 6.8% is the best monthly result of 2020. To improve the situation a month after the lifting of quarantine contributed to pent-up demand, the weakening of the ruble and government support, said the Association of European businesses (AEB). The dynamics of sales of the brands best sellers were mixed: a rise to 69% in the Skoda before falling to 30% in commercial Gas. The further development of events remains unpredictable, stress in the AEB.Sales of passenger cars and LCVs in Russia in July rose by 6.8% to 141,9 thousand cars, the AEB said. This is significantly better than results from previous months when the rate of decline of the market, for example, in June amounted to 23.3 percent in may to 51.8 per cent in April was 72.4%. The results of seven months remain negative: implementation of the machines fell by 19.3% to 742,7 thousand pieces. For updated in June, the forecast for the year, the Association expects a market decline of 23.9%, up 1.3 million units.The head of the Committee of automobile manufacturers Association Thomas Stenzel said that the results of January—July claimed better prediction. In addition, July was the first month with a significant increase on the previous year, indicating signs of long-awaited market recovery. Before that sales grew just 1.8% in January and March, but these results were influenced by the growth of prices against the background of increasing rates of car recycling fee and devaluation, respectively. The AEB point to the positive effect of state, noting its importance for dealers and manufacturers in the coming months amid the unpredictable development of the situation with currency rates, as well as new possible restrictions related to the pandemic.Sales growth for some brands could be even higher if not for the lack of inventory vehicles in warehouses associated with the interruption of production in the spring, says Thomas Sterzel: “you Can put that in the premium segment of the market dynamics of sales even better.”Half of the top 10 most sold in Russia in July, brands were able to increase sales. The leader of the car market AVTOVAZ showed a more modest increase by 6% to 31.2 thousand, which corresponds to the rate of the overall market. 3%, to 14.3 thousand vehicles, increased sales of Hyundai. While another Korean brand and a bestseller among foreign cars, Kia, by contrast, remained in the red by 4% (18 thousand units sold). Implementation of Renault’s fell 1%, to 11.6 thousand units, Toyota and UAZ — 5% (8.9 thousand pieces. and 2.8 thousand cars sold, respectively). Gas sales fell by 30%, to 3.6 thousand.Deputy Director of Department for work with corporate clients of GC “Avtospetstsentr” (ASTs) Constantine Avakian calls the main factor of sales growth in July the formation of a pent-up demand during the maximum of the restrictive measures in April and may. To a lesser extent, but still significant impact on demand had the expansion of the state programs of preferential lending together with an increase in the maximum value of the cars involved in them, up to 1.5 million rubles, he said. At the same buyers as in the beginning of the year, encourages the purchase of ongoing weakening of the ruble and, as a consequence, the probability of another adjustment in the prices, says Mr. Avakian: “By the way, as of June 2020 new cars rose on average by 9%”.In addition, the process of resuming production after the lifting of restrictions was leaking from the manufacturers in different ways, thus, the duration of the production and logistics cycle now also has a direct impact on sales performance. Brands with low availability of stock and of the produced cars were in a situation when increased demand cannot be met within a particular period, continues Konstantin Avakyan, and the consumer, considering the urgency of the acquisition, could make a choice in favor of rival brands that have the cars in stock.The Chairman of the Board of AG “Avilon” Andrey Pavlovich accepts that in July, the market has grown in part due to pent-up demand. Another significant factor that fueled the demand— a temporary shortage in the premium segment, said Mr. Pavlovich. The dealer said the deficit according to some models of Mercedes, Audi, Cadillac, BMW, Jaguar Land Rover. The shortage arose due to the effects of quarantine, reduced production and delivery volumes. The success of the Volkswagen brand is due to the release of the new Polo, believes Andrey Pavlovich.In “Rolfe” and talking about the impact on sale of the situation with coronavirus in General. So, about buying a car thought, and those who previously used public transport and taxis: “due to the spread of the virus these modes of transport do not seem safe.” In addition, now is still limited opportunities for recreation, and many clients go on vacation, which mitigates the usual summer slowdown in buying activity, conclude there.Olga Nikitina
