RS Brief news An automobile market with a lot of potential

An automobile market with a lot of potential

Plant of the company Volkswagen in Kaluga, Russia
Plant of the company Volkswagen in Kaluga, Russia

According to a study conducted by Boston Consulting (BCG), more cars will be sold in Russia than in Germany by 2020. In a few years' time Russia will thus become the biggest player in Europe's automobile market, selling over 4 million cars each year. At the moment there are roughly 290 cars per 1000 head of population (with outdated models accounting for many of these), whereas in Europe there are 560 cars for every 1000 residents, which points to the high potential for growth in Russia's automobile market in the next few years. These were the conclusions unveiled today by experts from BCG.

Boston Consulting bases its conclusions on forecast growth of roughly 6% a year in the Russia's car market, with 4.4 million cars sold annually by 2020. Russia is going to have the biggest market in Europe for cars, and the fifth-biggest market in the world. Moreover, BCG's experts point out that in 2020 Russia will not only be selling foreign-made cars: the government will be able to attract the world's leading car manufacturers using its own production capabilities, and thanks to this more and more cars are going to be made in Russia. Thus far, significant investments have been made in Russian companies by foreign companies such as General Motors, Ford, Renault and Fiat. RS