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Car market: Skoda, only in upgraded trim!

Today, buyers are offered more modern cars with upgraded trim

The first thing that analysts, already 'balancing the books' for 2012, are vying to talk about is the preference for more modest brands, but in a more serious trim. For example, Russians buying cars tend to pay more than they intended last year. By the way, the same map of car dealerships in Ukraine here is updated every year. Does this mean that the trend of paying more for better quality service is also characteristic of this country?

Overall, the situation in 2012 and the forecast for the upcoming 2013 is characterized by growth. For the first time since 2008, the market 'slump' ended and previous pre-crisis peaks were surpassed again. Over the past year, almost three million new cars were sold in Russia – both passenger and commercial. By the way, compared to the previous year, 2011, car sales were 10.6% higher.

Good news for the car market was announced by the chairman of the Automobile Manufacturers Committee, head of AEB – the Association of European Businesses. Jörg Schreiber explained what the coming year 'holds': the results of 2012, it turns out, even exceeded European expectations. So Skoda dealerships can count on consumer favor.

However, growth slowed by the end of the year, and the difference in December was only one percent of sales, while at the beginning of 2012 there was a 20% increase.

And yet, it is worth celebrating the return of interest in automotive topics: because the surpassing of 2008 figures and pre-crisis data draws attention. Quantitatively, the increase was only 0.6%, but in monetary terms, even with the strengthening dollar, growth was 19%. These are very interesting data that attracted the most attention from Ernst & Young. According to this authoritative agency, total sales of passenger and commercial vehicles in 2012 amounted to $74.9 billion (while five years earlier it was $63 billion). By the way, the average annual exchange rate of the 'main foreign currency' then was about 25 rubles, and in the past year – 31 rubles.

Thus, car owners who calculate the difference in rubles will be absolutely delighted – compared to 2008, the market has grown very significantly, by almost 46%.

By the way, every year, according to experts, the average price of a car increased by 5%, sometimes more. The reason is simple: cars that come to the market are more technically advanced, and as a result cost more. No less attention is paid to buyers: they want to upgrade the class of car, gradually moving to more representative cars and more expensive trim.

January 16, 2013

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