Russian auto market may contract 20%-30% in 2015 - Renault-Nissan head
GENEVA. March 4 (Interfax) - The Russian automobile market may contract by 20%-30%, the head of Renault-Nissan Alliance Carlos Ghosn said at a press conference during the Geneva Motor Show.
Today Renault-Nissan is the largest automobile manufacturer in Russia - the Renault-Nissan - Avtovaz alliance holds more than 30% of the market. It is clear, that the reduction of the Russian market has affected us. Last year the market fell by 11% and this year, it is most likely that it will fall by 20%-30%, in January the fall was 25% and it will continue. Therefore Renault-Nissan will implement its plans in accordance with the situation, it is lowering the rates of production, reducing the reserves of ready products and adjusting the price policy as a result of the fall of the ruble, Ghosn said.
He said that it is the short-term adjustments, which are allowing the alliance's business to be protected. As concerns the long-term policy, Renault-Nissan does not think that everything is over for it, the light at the end of the tunnel is visible. The market fell quite sharply, but it can recover just as quickly, Ghosn said. The alliance is using this opportunity in order to localize production of its automobiles in Russia even more. He said that here the company has an advantage, because in Russia it has amble production capacities. In these conditions the company can even increase its share of the market, because today automobile manufacturers with the highest level of localization in Russia are in the most advantageous position due to the weak ruble, the head of the alliance said.
Therefore, for Renault-Nissan this is simply a small storm: the adjustment of the short-term activity and the preparation for the recovery of the market. Ghosn said that he did not know when this recovery will happen, but he does not think that this is known to anyone. This depends on factors, which the company cannot influence: the Ukrainian crisis, oil prices - many factors and conditions. The Renault-Nissan head said that the company knows that when the recovery begins, the company should be ready for it in order to reach its goal of 40% of the market.