Affected by the country’s poor GDP growth rate, Russia’s auto market has also been affected in recent years, and there is still a certain gap in new car sales compared with other European countries.
Today, Honda has even withdrawn from the Russian market because of poor sales. As per the report, on December 30, Honda Russia stated that as part of the company’s business restructuring plan, the company will stop supplying new cars to its dealers in 2022.
Honda Russia said that it will continue to sell motorcycles and power tools in the Russian auto market and retain related activities for car after-sales service.
Unlike other Japanese automakers such as Toyota and Nissan, Honda does not have a factory in Russia, and all Honda cars sold in the country are imported in the form of complete vehicles.
The main reason for Honda to withdraw from the Russian market was poor sales. According to data from the European Business Association, Honda sold only 79 new cars in Russia in November, a sharp drop of 50% year-on-year.
From January to November this year, Honda’s cumulative sales in Russia fell 15% year-on-year, a decrease of 1,383 vehicles, while the overall monthly sales in Russia exceeded 1.3 million.
It is worth mentioning that the impact of the pandemic on the Russian auto market has also begun to gradually decrease.
In November, Russian light vehicle sales arrived at 157,580 units, an increase of 5.9% compared to November 2019, refreshing the market’s highest monthly record this year.
However, even so, Russia’s annual car sales this year will also see a sharp decline. Data show that in 2019, Russian car sales were 1.76 million.
This year, affected by the epidemic, some experts predict that Russia’s auto market will shrink by 15%-30% this year.
(Via)
