Russia drives car market sales across the globe

02 September, 2012

Russia is making it big in the car manufacturing area, as more and more European and American companies are setting up their factories there. The good sales rate is seen as one of the reasons for the growth of car market in the country.

PEUGOT AND Mitsubishi did not cut any corners when they teamed up to open this factory in 2010, 200 kms from Moscow. 500 million Euros was the total investment and 130,000 square metres was the total area of the factory set up in Russia. Last year, according to a report of AFP, a total of 35 percent growth in Russia was recorded in the car market.

The head of the successful car companies that is attracting car lover's attention to Russia was Suzuki Reno. After they set up their factory in 2005 in Moscow sales have accelerated no end and last year they were recorded at 61 percent with a 155 thousand cost produced. Reno is now the second most popular brand in the Russian market and first choice when it comes to foreign money factories.

With 1 in 3 Russians owning a car there is a large market to exploit, as many factories in Moscow know too well. CEO of PSA Peugot Citroen, Russia Ukraine and CIS, Bemd Ludwig Schantz said, “I would say that today Russia is a bit like Peru. It’s a market, which is taken off and is developing strongly. It certainly is one of the world's fastest growing markets.”

In addition to Europe manufacturers, American giant General Motors recently announced the investment of a billion dollars in its Russian production line. Economic crisis seems a far cry from the glamorous market of the cars. Bruno Ancelin, Renault Operations Director for Eurasia when asked said, “It is clearly a market that is compensating for the difficulties faced by all the manufacturers in Western Europe because of the economic situation.” With annual growth of 4 percent, the factories in Russian car manufacturers are very much in the driving seat of what looks like a clear road ahead of them.