Car sales to drop 50% in June

June 2020 will be another month when new car sales will continue to fall, according to President of the Russian Car Dealership Association (ROAD) Oleg Moseyev.

The prices are expected to fall 50% compared to June 2019, according to the expert. However, he told TASS the following:

“The decline will slow down.”

This 50-percent drop in sales is, among other things, due to the fact that people’s purchasing power is rather low after several months of self-isolation and the ‘postponed demand’ will hardly make any difference to car dealerships even when (and if) offline selling cars will be allowed again starting June 1.

Currently, Moscow and the Moscow Region, the areas with the largest sales in the country, remain among the regions where car dealerships are closed for visits.

As of the end of May, it is expected that the annual sales will actually drop 50%. The Association of European Businesses estimates that April demonstrated a 72.4% drop in annual sales and 19.1% since the beginning of the year considering the accumulated effect.

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