AEB sees sharp slowing in demand on Russian auto market, for some brands by up to 40%-50%

MOSCOW. Jan 11 (Interfax) - Demand in the Russian auto market has slowed significantly since the end of last year, by 40%-50% for some car brands, the Association of European Businesses (AEB) said.

"Speaking of the sales side, there is now a sharp slowdown in demand - traffic is falling by up to 40%-50% for some brands. The 'pipeline' of deliveries, which has been moving since September-October, is starting to slow, that is, inventories are growing. And here's the problem - financing of these inventories is becoming very expensive," said Alexei Kalitsev, head of the AEB Automobile Manufacturers Committee, at the association's annual press conference on the results of the car market.

The reason for the growth of costs is the high key rate, which AEB does not expect to decrease in the coming months, he said.