Despite the failings of the overall European car market, Russia has proven to be a real bright spot in the region.
Whereas car makers are fairly reluctant to invest in countries such as Spain, the UK and Italy to name a few, Volkswagen and General Motors are more than happy to invest over €1 billion in the Russian car market.
Both companies are banking on major growth in the countries car market with such huge investments, making it one of the best emerging car markets in the world. Around 3 million vehicles alone are expected to be sold this year.
Volkswagen has justified their €1 billion investment by predicting a 30 per cent increase in sales in Russia in 2012. General Motors have promised to invest the same amount but over a period of 5 years.
Renault, another European major mass car manufacturer also has a great deal of faith in the Russian car market. They believe that Russia can become their second biggest market place ahead of Brazil.
So why are Russia suddenly popping up as one of the world’s most promising car markets? Many motorists in the country currently have old cars and are opting to replace them with brand new cars. Many qualified drivers do not yet own a car and want to purchase a brand new one. Customers like these will last for a good number of years long into the future.
The Moscow motor show has further enhanced the reputation of the Russian car market. With such beautiful cars and the world’s biggest car makers on display, many around the world will be paying close attention along with Russian motorists themselves. More than 1 million people are expected to visit the car show in total throughout it’s duration. There will be 86 Russian market bound vehicles on display, 24 vehicles that have never seen before around the world showings and 21 never seen in Europe before showings.
The Maserati GranCaribo Sport will cost €264,000 and has a top speed of 177 MPH. Only the rich in Russia will be able to afford such a speedy type of car. More than 40 Maserati’s have been sold in Russia already this year.
Although expensive one-offs such as Maserati’s prove big hits to oil tycoons, standard passenger vehicles are the way forward. A huge increase in demand is expected to come. Volkswagen Russia looks set to take full advantage.