OREANDA-NEWS. January 26, 2009. PricewaterhouseCoopers has presented an overview of the Russian automotive market 2008 “Effects of the crisis on the Russian automotive market”, reported the press-centre of PricewaterhouseCoopers.

Despite a significant slowing in growth, in 2008 Russia was the most dynamically growing major automotive market in the world.

In 2008 the market grew by 29% in cash volume, that accounts for USD 69 bln, and by 14% in quantitative terms, accounting for 3, 175 million vehicles.

For the first time the local production of foreign cars became the most dynamically growing market segment. If compared with 2007 the production grew last year by 32% (580 000 vehicles).

2008 results is a tale of two halves. Sales grew at record levels during the first six months even up to the end of July. Then the growth rate dropped dramatically. October showed the first ever decline against a previous year’s results in recent memory.

The primary drivers of the Russian economic downturn are loan interest rates and a weak currency.

The prospect of rising unemployment and limited wage increases could combine to reduce 2009 sales by between 25% to 50%.