Sales Growth Will Only Bring Temporary Relief, BMI Warns

The Russian government's attempts to bolster the auto industry have met with some success. Following the introduction of a vehicle scrappage scheme on March 8, the market reported a 20% year-on-year (y-o-y) rise in light vehicle sales in April, when it shifted 163,299 units, the first monthly increase in sales since September 2008. Despite this, BMI believes the boost will only bring temporary relief. We expect overall consumer demand growth to remain subdued by a weak labour market and only a tentative recovery in credit

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