Russia Autos Report - Business Monitor International - Industry Reports

Russia Autos Report

Russia Autos Report - Business Monitor International - Industry Reports
Russia Autos Report
Published Aug 27, 2016
41 pages — Published Aug 27, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Abstract:

In line with our previous view, that Russia s government would continue industry subsidies, Russia s government announced in January ---- that it would boost the automotive industry with a further RUB--bn (USD---mn) worth of demand and supply-side subsidies. On the demand side, the scheme will provide a further RUB--.-bn towards the current scrappage scheme, RUB-bn towards the country s preferential leasing scheme, RUB-.-bn towards the preferential loan scheme (with an additional RUB-.-bn to cover previous obligations from earlier forms of the scheme), and RUB-bn towards government vehicle procurement schemes. ...In line with our previous view, that Russia s government would continue industry subsidies, Russia s government announced in January ---- that it would boost the automotive industry with a further RUB--bn (USD---mn) worth of demand and supply-side subsidies. On the demand side, the scheme will provide a further RUB--.-bn towards the current scrappage scheme, RUB-bn towards the country s preferential leasing scheme, RUB-.-bn towards the preferential loan scheme (with an additional RUB-.-bn to cover previous obligations from earlier forms of the scheme), and RUB-bn towards government vehicle procurement schemes. On the supply side, the government is providing a further RUB-.-bn to its scheme subsidising the interest repayments on automakers investment loans. ...On the demand side, the scheme will provide a further RUB--.-bn towards the current scrappage scheme, RUB-bn towards the country s preferential leasing scheme, RUB-.-bn towards the preferential loan scheme (with an additional RUB-.-bn to cover previous obligations from earlier forms of the scheme), and RUB-bn towards government vehicle procurement schemes. On the supply side, the government is providing a further RUB-.-bn to its scheme subsidising the interest repayments on automakers investment loans.

...Looking forward, we believes that Russia s automotive industry will remain in a slump in ----, falling by -.- , with government purchasing subsidies becoming less effective as consumers start to feel the squeeze on their incomes from high inflation and falling employment while businesses cut back on capital expenditures. The slowdown will come as Russia s automotive market reaches its lowest base in six years. ...The slowdown will come as Russia s automotive market reaches its lowest base in six years. Beyond ----, however, low base effects and marginal improvements in capital expenditures and steadying real wages will help the market to begin its recovery. However, this will be at a slow rate as consumers and businesses still remain weak after their real savings have been eroded by recent inflation. ...Beyond ----, however, low base effects and marginal improvements in capital expenditures and steadying real wages will help the market to begin its recovery. However, this will be at a slow rate as consumers and businesses still remain weak after their real savings have been eroded by recent inflation.

...BMI View: Declining real wages coupled with high inflation will drag on passenger vehicle sales as consumer purchasing power is eroded. Although we maintain a broadly negative outlook for the domestic vehicle industry to ---- as it remains below its previous peak level, total vehicle sales will return to positive growth in ---- and continue growing to ----. ...

  
Source:
Document ID
1749-0111
Country
Industry
Format:
PDF Adobe Acrobat
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "Russia Autos Report" Aug 27, 2016. Alacra Store. Dec 07, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Russia-Autos-Report-2026-167>
  
APA:
Business Monitor International - Industry Reports. (2016). Russia Autos Report Aug 27, 2016. New York, NY: Alacra Store. Retrieved Dec 07, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Russia-Autos-Report-2026-167>
  
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