Russia Will Become Europe’s Largest Automobile Market by 2014

In 2010, Russia is the 5th largest automobile market in Europe, trailing Germany, Britain, France and Italy. However, Minister of Industry and Energy of Russia, Vikto Khristenko said Russia is ranking No. 3 in Europe for automotive sales.

In an article in Ria Novosti, Khristenko said, “The steady growth trend for Russian production and the domestic market has turned the country into Europe’s third largest car market by sales in the first five months of the year. I am absolutely sure that we’ll become Europe’s largest car sale market by 2014.”

Earlier this year, the Russian government began to launch a stimulus program for the automobile market. The Association of European Businesses said, Passenger vehicle sales rose 77% in the first two months of 2011.

Besides, the Russian government signed deals worth $6.3 billion with foreign auto makers in 2011. Specifically, Fiat will invest $1.1 billion in the expansion of a local automobile factory and another factory to produce engines. GM is expected to invest about $1 billion to expand and modernize its Russian facilities, and Volkswagen to invest $900 million.