Russian automobile market grows 50% in money terms in H1

The Russian automobile market grew 51% in money terms and 28% in volume in the first half of 2007 compared with the same period last year.

The Russian automobile market stood at $20.6 billion in the first half of 20076 and there were sales of 1.165 million vehicles, Stanley Root, a partner in PricewaterhouseCoopers, told journalists on Thursday.

However, sales of Russian-made automobiles dropped 23% to 300,000 vehicles and 8% in money terms to $2.4 billion.

In commentating on the situation on the Russian automobile market, Root said that the Russian government is actively working to protect the Russian automotive manufacturing business, however he thinks that the production of old cars will drop. The question is how fast new models will replace old ones, he said.

New foreign cars accounted for 78% of all sales in the first half of 2007 compared to 71% at the end of 2006. rm