Industry Trend Analysis - Rising Business Activity Will Support PSA Van Production Plans - FEB 2018
BMI View : I mprovements in business activity and investments along with lower borrowing costs will support the ongoing recovery in Russia's light commercial vehicle market and create the supportive consumer market for PSA to tap into with its new domestically produced vans.
In November 2017, French automaker Groupe PSA announced it will commence with the production of commercial vans at its Russia plant from Q118 in an effort to triple sales volumes outside its main European markets. The company's plant in Kaluga will produce Peugeot Expert and Citroen Jumpy light commercial vehicles (LCVs), in addition to the passenger cars it already makes at the site.
Given that there are no details on how many vans PSA is targeting to produce at its plant, we are holding off on making any revisions to our LCV production forecasts. We currently forecast LCV production to accelerate 12.2% in 2018, up from a projected 6.0% in 2017, and average annual growth of 4.4% between 2018 and 2021.
|LCV Production Rising Further In 2018|
|Russia - Light Commercial Vehicle Production, Units|
|f = BMI forecast. Source: OICA, BMI|