OREANDA-NEWS. On 07 March 2008 was announced, that the Russian motor vehicle market grew by 57% in 2007 to over US$50 billion. By volume of sales, the Russian car market is sixth in the world and third in Europe. The heavy truck market became Europe’s biggest in 2007. These are the results of an annual survey of the auto industry for 2007 prepared by Ernst & Young, a global leader in assurance and advisory services.

“By 2012 Russia will overtake Germany and Italy to become the biggest market in Europe in terms of motor vehicle sales,” stated Ivan Bonchev, Senior Manager and CIS Automotive Leader with Ernst & Young.

The Russian market is projected to comprise 5.2 million motor vehicles in Russia by 2012, of which 4.6 million will be new foreign models. This projection is based on manufacturers’ plans, comparative data on the density of the motor vehicle population, increased public prosperity and the development of loan products.

According to Ernst & Young’s study, sales of new vehicles in 2007 grew by over 35% in terms of quantity and 60% in money terms year on year, while the population’s real income grew by only 13%.

In 2007, 48 of every 100 motor vehicles were purchased using loans, and the average loan approached US$15,000. Sales of new vehicles in 2007 totaled 2.4 million, of which 1.2 million were purchased on credit.

“We are seeing record investments in the auto industry. Over ten players on the international auto market are concluding an agreement to establish production units in Russia by 2012 with an overall capacity of some 1.5 million vehicles,” said Ivan Bonchev.

Russian market players are restructuring their enterprises and forming new strategic partnerships. Regional growth of dealers and direct investment funds is continuing. The auto loan market is seeing competition and an influx of new players, including banks related to auto manufacturers and credit institutions.

Ernst & Young’s survey presents key market indicators for the last several years and the opinions of market leaders and analysts, as well as information on the latest market trends and auto industry statistics.

This year Ernst & Young prepared a detailed analysis of the auto market in Ukraine, Kazakhstan, Belarus and Uzbekistan, since, of the 12 CIS countries, these four account for a major share of the auto market – around 27% of the CIS motor vehicle population.

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