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Falling Russian car sales could mean a boost for the UK car industry

Home / News / Falling Russian car sales could mean a boost for the UK car industry

Vehicle sales in Russia have been in a state of decline since the final quarter of 2014, and tumbled year on year by 38% in February. This dramatic fall denotes the most substantial drop since 2009 and is a result of the failing Russian economy and its increasing progression towards recession. The fall is expected to offer the currently booming UK car market an additional and unexpected boost this year. Many industry experts are predicting that European car production could be diverted to right hand drive for the ever growing UK market.

There are several leading manufacturers that supply Russia, but the significant downturn has resulted in supply that needs to be sold elsewhere. Speculation suggests that the combination of the vast supply of vehicles and the pressure on the Euro will encourage global manufacturers to shift their attention to UK sales. As Euro currency exchange rates have changed from 1.2 to 1.45 it renders the UK a much more profitable market for European manufacturers. Simultaneously, UK based manufacturers will discover greater profitability in maximising their sales due to the falling margins in Europe.

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