Russia's automotive market showed unprecedented growth last year, however analysts warn 2012 won’t be an equivalent with slowing sales or perhaps a fall.

According to a report from Autostat analytics last year Russians bought regarding two. 5 million cars a four-hundredth growth. The sale increase makes the country second-largest automotive market in Europe.

Germany continues to high the sales chart with three. 2 million cars sold. France comes in third with two. 2 million with atwo % drop in sales, and therefore the UK fourth with one.9 million – a four. 4 % drop.

“The spectacular growth of four-hundredth was largely as a result of the autumn within the market the previous year was spectacular further. therefore what very happened is that the market has begun to recover nearly to pre-crisis level so four-hundredth growth must be understood within the context of what was before,” says Stanley Root, partner and automotive trade leader at PriceWaterhouseCoopers.

Root believes the Russian market depends on the negative world news. “This could be a psychological issue. When things are going smart they [the Russians] react well and when things are going unhealthy they're terribly cautious. That’s what happened throughout the last crisis – different markets fell by 15-20%, the Russian market fell five hundredth, as a result of individuals stopped shopping for. Not as a result of they failed to have enough cash, they merely stopped shopping for. And currently we've seen as individuals get cash they're spending additional of it, therefore we've this type of volatility”, says Stanley Root.

PwC specialists believe the expansion cannot exceed four-dimensional which a most of two. 6 million cars might be sold in Russia in 2012. They additionally say a negative world crisis might cause an V-day fall within the Russian market to two. 3 million cars.

“Because individuals are through one crisis they're additional ready, there is also robust times, however it'll turn out a smaller downturn [than in 2008] and there is also an upturn if things go well”, says Stanley Root.

In his forecast for 2012 Mr. Root additionally points out that native automotive producers can get pleasure from a growing presence of overseas producers within the Russian market this year. “Russian automotive producers are remodeling their business, obtaining out of the previous models they need been hoping on for a generation. they're getting down to turn out a variety of latest models that are additional competitive with western counterparts. An alliance between Russian and foreign producers goes to be the means forward for the Russian industry”.