Russian automotive market update: what would be the real cost of sanctions?
The economic downturn and political uncertainty have kept revenues in the Russian automotive market on a downward trend for months now. In the first eight months of the year the market fell 12 percent, even tumbling by some 25 percent in July and August. And there's no sign of a recovery any time soon, as Russia struggles with an ailing economy, rising inflation and a volatile currency. The uncertain outcome of the Ukraine conflict and the harsher sanctions imposed by the European Union and the United States are adding to the pressure.
Any decision by Russia to retaliate and impose sanctions on car imports from Europe and the U.S. could undermine the Russian economy even more. In our study " Russian automotive market update: what would be the real cost of sanctions?" our experts devised three scenarios to illustrate the impact of sanctions on the Russian automotive industry.