OREANDA-NEWS. March 10, 2010. The city of St. Petersburg has hosted a roundtable discussion "Will Car Market Grow on State Support? Car Loans and Motor Insurance in Current Situation", where Mr. Vladislav Anisimov, Deputy Head of the North-Western Directorate of OJSC IC ROSNO, delivered a speech. The event was organized by the media holding Azhur, together with the newspaper "MK v Pitere" and the publishing house TT Finance, reported the press-centre of ROSNO.

The discussion centered on analyzing the situation in the car loans market, measures supporting the purchasing ability of potential clients (bonus programs by dealers and car manufacturers, state support programs), measures protecting the purchased property (insurance, antitheft systems), etc.

The roundtable participants have arrived to the unanimous conclusion that the economic situation had certainly affected the quantity of transactions performed. According to the representatives of car dealers and banks, the negative dynamics peaked in the summer of 2009. The sales growth recorded in the first quarter of the previous year was largely caused by the general public’s desire to free up cash and invest it into certain material items of value, including purchasing new cars. Overall, the share of cars purchased by St.Petersburg residents on loan in the total volume of car sales decreased from 50% in 2008 to 28% in 2009. According to experts, the car market indicators will return to the pre-crisis period of the year 2008 only 2 to 4 years from now at the earliest. However, already the first two months of the current year demonstrate a positive trend: firstly, we see a larger average loan amount, which speaks for the growing confidence of the St.Petersburg residents in the future; secondly, the leaders of sales via banking services were such car brands as Hyundai, Chevrolet, Kia, Mitsubishi, Volkswagen, which also indicates that the personal wellbeing of a part of clients of the banks and car dealers had grown or stabilized.

The main drivers of growth in the car market for the next several years, according to the roundtable participants, will be the joint programs of car manufacturers and dealers, which will enable considerable discounts for the end consumer. Thus, for example, under the program implemented by Sberbank, the interest rate for the loan provided jointly with Lada Finance will equal just 9.33%, taking into account the lower refinancing rate. The important role in demand creation is also played by state programs: state support for car loans and utilization of old cars. The costs of utilization are borne by the state: it provides sites, options for interaction with dealers, discount coupon for 50,000 roubles granted in case of purchasing the new car, etc. According to the estimates made by banks and car dealerships, the car loan program, as amended in autumn, indeed, succeeded in increasing the general public’s purchasing ability and motivating those clients who had previously hesitated to purchase cars. According to the banks’ representatives, about 30% of the total volume of car loans was provided exactly under the car loan program currently in force. As for the utilization program, the market participants expect positive results from it as well.

At the end of the heated discussions of the measures capable of bringing the market indicators to the pre-crisis level, the event participants discussed the specifics of insuring cars bought on loan. Mr. Vladislav Anisimov, Deputy Head of the North-Western Directorate of OJSC IC ROSNO, acted as an expert on this issue. According to his estimate, the motor insurance market shrank in 2009 by up to 30%. The major factor in this downfall has been the decrease in sales of new vehicles. He also noted a trend whereby many clients shift from small and medium-size insurers to the federal scale companies, which are more reliable. In this respect, when choosing an insurance company, consumers increasingly pay attention to the Russian and international ratings assigned thereto, financials available, the company’s shareholder structure, and the degree of its client focus.

The roundtable discussion was attended by representatives of car dealers, banks, insurance companies, and the city administration. Among the companies were Alarm Motors Ford, PPT car holding, Sberbank of Russia (North-Western division), Rusfinance Bank, JSCB Rosbank, etc.