Actuality January 15, 2008

Sales of new foreign cars in Russia grew by 61%, up to 1,65 mln items for 2007. During December Korean Hyundai Motor Company was able to return to top three of the market leaders, compensating the failure at the beginning of the year. Among the first thirty makes only French Citroen showed slumping sales – the sole among them that did not control the sale of cars in Russia.

The Association of European Business (AEB) published data about the sales of foreign cars in Russia for 2007. More than 1,65 million cars were sold altogether, sales’ growth totaled 61%. According to Ernst & Young estimations, there have been sold new foreign cars for $36 bln. Chevrolet became the market leader with the sale volume of 190,5 thousands cars (growth by 71%). The second place took Ford (175,8 thousands, 52%), the third – Hyundai (147,8 thousands, 47%).

Hyundai managed to enter top three of the Russian market leaders only for a month. It lost the place at the beginning of the year, and till December Toyota occupied the third position in the AEB table. As of November end Toyota outstripped Hyundai for 2,4 thousands cars on sales. Now the situation is vice versa: according to 2007 results the Japanese Motor Company yielded Hyundai the same 2,4 thousands cars.

Moreover, according to 2007 results Hyundai Accent became fourth on popularity in Russia (53,6 thousands sold cars). If according to August, 2007 results it occupied only the ninth place, according to September results – already the sixth, and the current line occupies from October. For two months Hyundai Accent has been consistently winning back positions at Mitsubishi Lancer, Daewoo Matiz, Chevy-Niva, Toyota Corolla and Daewoo Nexia. The best market showed only the budgetary make of Chevrolet Lanos, which for January, 2007 managed to rise from the seventh line to the third one. Traditional leaders of the Russian sales did not let Hyundai Accent to grow higher than the fourth place – Ford Focus cars (market leader, 97 thousands), Renault Logan (67,8 thousands) and already mentioned above Chevrolet Lanos (57,9 thousands).

Ivan Bonchev, the head of car practice of Ernst & Young, considers the main reason of Hyundai sales’ growth in Russia is the increase of supplies of vehicle sets for make assembling on the Taganrog Automobile Plant (TagAZ, controlled by Doninvest financial industrial group (FIG). Ivan Karpuzov, the TagAZ representative, confirms that since September, 2007 (i.e. from the beginning of Hyundai Accent sales’ growth) Hyundai began to increase shipping, and "if earlier the plant assembled 6-7 thousands per month, from the autumn – in 10 thousands ". In Bonchev opinion, Hyundai dragged somehow out the decision about the deliveries increase on TagAZ. The expert supposes that it can be related to "inner problems of motor company". Indeed, there were strikes and corruption scandals in Hyundai.

The distributor change of Hyundai in Russia influenced also the sales’ growth, considers Alexander Agibalov, AG Capital managing director. From July, 2007 "Hyundai Motor CIS" controlled by the motor company, manages import of Hyundai. It is Hyundai joint venture with the former general distributor of the make – dealer group Rolf. "Hyundai Accent example showed, what potential possess the mass makes of Hyundai", says Agibalov. "If at the plant which Motor Company will construct in Russia (its power will make 100 thousands cars), a mass make will be assembled, it will be possible to talk about Hyundai returning to leadership on the Russian market". Motor Company was the leader in Russia in 2004-2005 and in the first half of 2006.

Only Citroen showed slump among the top thirty of foreign cars in 2007. It was small (6%), however it was enough that Citroen moved from the 17th to the 27th place in AEB rating for 2007. In Ivan Bonchev opinion, the reason is that to the end of 2007 Citroen import was managed by non-controlled company and not one distributor, but few at once ("Satori", "Citroen Center Moskow", "Atlant-M", "Citroen Otradnoe" and "Citroen Eksis"). Yesterday in the Russian office of Citroen it was confirmed that until recently they remained "the sole office of foreign Motor Company that did not centralize sales", and added that also felt "deficit of advertising budget". But from 2008 the Russian office of Motor Company will manage Citroen import.

Sales’ results of foreign cars in Russia in 2007

Source: Association of European Business in Russian Federation
* In 2006 there was no data