Almost every fourth Russian car dealer was on the verge of bankruptcy
OREANDA-NEWS. About a quarter of Russian car dealers are on the verge of bankruptcy, said the vice-president of the association "Russian Automobile Dealers" Vyacheslav Zhigalov on AutoInvest conference in St. Petersburg.
"This year, dealerships may lose a half of their download service. The number of dealers who are on the verge of bankruptcy, is estimated in amount of a quarter of the market; it is about thousands of companies "- said Vyacheslav Zhigalov, who was cited by the agency" Interfax ".
He explained that the long downturn in the car market has the second wave of effects - churn from service. "Three quarters of revenues dealers (currently - IF) – are the revenue for the service, as sales already do not bring profit," - he added.
According to the analytic agency "AUTOSTAT", as of January 2016, in Russia there are about 3.8 thousand cars dealers. This is less by 7% than a year ago, when their number exceeded 4,000. Among the most notable players the most decreased dealer networks of Chevrolet (-68% to 51 units) and Opel (-42% to 87 units) that actually stop their business in our country. The third part of the dealers was lost by Great Wall (54 units) and Peugeot (up to 51 units), from 20% to 25% of dealers were lost by Geely (up to 69 units), Suzuki (up to 53 units) and SsangYong (up to 100 units). Domestic brand LADA still has the most of all dealerships in the Russian Federation (320 units), but their number became less by 16% for the year.
However, a number of manufacturers have the growth of dealers. At the same time the most new dealers are belonged to domestic UAZ (+ 31% up to 165 units). Jaguar dealer network has increased by 20% (up to 55 units), Hyundai – by 13% (up to 155 units), Lexus - 12% (up to 46 units). However, there are some companies that are limited only by the rotation of the dealers, by closing some auto centers and by opening new ones. As a general rule, changes in their dealer networks are very small (Nissan, Volkswagen, Skoda, Toyota).
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