The incredible increase is driven directly by consumer spending, which went up even more than car sales, rising 64% to $33.8 billion.
Like the U.S., about half the market is taken up by foreign carmakers. Chevrolet is the best-selling brand in the country, with Hyundai and Ford rounding out the top three through the first six months of the year.
Total volume in the Russian market is expected to reach 3.8 million, or more than 25% of the projected year-end figures for the U.S. market, according to Edmund's AutoObserver, citing an accounting analysis by PricewaterhouseCoopers LLP. German sales are only projected to make it to 3.2 million be year's end. The strength in Russia's market isn't expected to run out anytime soon, either - in the years leading up to 2015, the country's car sales are expected to account for one-fifth of global sales growth.
Reader Comments
Fri Jul 11 2008 3:52 PM
amac says
No surprise that Chevy is big in Russia, they still aspire to that outmoded American dream. Just like cigarettes are still booming business in third world countries.
Fri Jul 11 2008 5:11 PM
Gus says
You're right, coudln't have anything to do with the cars being decent and cheap.
Fri Jul 11 2008 5:31 PM
Rich says
Russian roads and winters favor sturdy and reliable SUV's and Chevrolet actually has always excelled at that even if they haven't been as "chic" as some foreign brands. Word gets around and Russians aren't as naive as you may think and know a good deal when they see one.
Fri Jul 11 2008 9:28 PM
Craig S says
You guys are still drinking "Buy American Coolaid". If GM built such great quality and durable vehicles why have sales here in the US & Can tumbled?
It cannot be because of the price of gas alone as in Europe it's much more expensive versus here in the US. GM has built sub par products which have pretty much stayed the same while imports have improved and passed them in the sales lane while eating away at their market share. Even Hyundai now builds better quality products compared to most of the big three which certainly wasn't the case 20 years ago when Hyundai launched in North America with the Pony. Those that don't learn and improve die out, something the big three have taken too long to learn
Sat Jul 12 2008 2:15 AM
Tokugawa says
Actually Chevrolet produces some of the most affordable and durable off road vehicles available in the market,. Check out the Chevy Niva. It is easy to criticize vehicles and companies, when you have not actually been to those markets, their conditions and understand customer preferences.
Sat Jul 12 2008 6:50 AM
danielG says
I'm portuguese.
Perhaps americans aren't aware of this, but GM bought Daewoo some time ago and rebranded Daewoo as Chevrolet in Europe. Before this, Chevrolet was a brand that hadn't been seen in decades. None of the American models are sold in Europe, except the Corvette.
Chevy cars must sell better in Russia because they are cheaper than most euro cars and, since they are butt ugly, noone else buys them.
Sat Jul 12 2008 9:35 PM
Craig S says
Tokugawa,
Which market are you referring to? Here in the US and Canada GM in the month of June has see a sales reduction of almost 30% versus June 2007. GM sales in North America have been in decline for the last 8 years or so and lately its only seemed to speed up.
Here in NA the GM products by enlarge are not good quality or durable. A friend had a GMC Jimmy SUV and after 3 years the paint was peeling and looked like it was 10 years old. Also, the interior had so many rattles it was not funny. Then they wonder why their sales are declining and no one wants to buy what they produce.
Sun Jul 13 2008 10:22 AM
Andy W says
Craig S,
Where are you getting your numbers from? I can't speak for Canada, but here is the US GM's June sales decline was 18% while Toyota saw a 21% decline for the same period versus last year. You're probably right that the sales decline is not just due to gas prices going up, since the Toyota Prius saw a 25% decline for June. The auto industry is expected to see a slow down through the end of this year and that includes foreign companies as well.
Everyone has a "I have a friend ..." story about a vehicle from every car company so that doesn't really add much credibility to your point.
Mon Jul 14 2008 6:36 AM
Tokugawa says
Craig S.,
G.M. has and still is experiencing a decline in customer sales in North America, most notably to Toyota and other import brands, though I may beg to differ on the quality issue, that is another matter. Yet your assumption of my referencing the North American market in a Russian related article shows solely a North American perspective. If you ever have the chance to visit Russia, drive in their cars and their roads as well as take into account socioeconomic factors, you will clearly see why chevrolet has such a strong presence in the market.
Best Regards,
Tokugawa
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