(Source: http://avto-fan.com/russian-car-manufacturers)

The domestic car market may shrink by 12 percent in 2016, this forecast was pronounced at the Russian Automotive Forum, as “Autostat” reports.

According to experts, the sale of vehicles will not exceed 1.4 million units. It is 100 thousand cars less than previously forecasted by the Association of European Businesses (AEB).

There are prerequisites for the more pessimistic forecasts: no more than 1.2 million units will be sold. Annual results depend on oil price which determines the value of the rouble in many ways. The pre-crisis level of sales used as a basis by investors when developing strategies for Russia can be achieved at a price of $ 100 per barrel, as the experts noted. According to them, it will take at least ten years.

According to AEB forecast for 2016, the volume of the Russian car market will amount to 1.53 million units. In February of this year the market showed the smallest drop in 14 months. According to the opinion of the Chairman of the Committee of Car Makers of Jörg Schreiber’s Association, this effect is due to the low base of last year. The used car market grew by 10.9 percent in February – up to 370,000 sold cars. Positive dynamics of sales was marked for the first time since December 2014. The three leaders of the domestic car market included “AvtoVAZ” with the result of 19035 sold cars (minus 19 percent); KIA - 11492 cars (minus 9 percent) and Hyundai with 10510 sold vehicles (minus 21 percent). On February 26 it was revealed that more than half of new cars sold since the beginning of 2016 were purchased with the help of government programs for stimulating demand.