Russia to Overtake Germany in New Car Sales?

We know that doesn't sound doable, but a consultancy firm predicts a bright future for the Russian market, forecasting significant increases in new car sales in the next 9 years. Basically, Boston Consulting Group says that Russia has what it takes to become the world's sixth largest car market in the world. Although this is indeed a great achievement, because we're talking about global markets here, this won't happen sooner than 2020, the consultancy company says.

Citing data provided by the Moscow-based office of the company, a report by Autonews shows that Russia would have to grow at an 8 percent annual rate until 2020, which means the country would have to reach the same level of new car sales as before the crisis in about 2 years. Which, in other words, means that Russia will sell around 3 million cars per year starting with 2013.

Five years later, Russia would even surpass Germany as the largest market for passenger cars and light commercial vehicles on the Old Continent, while in 2020, the country will officially become the sixth largest car market in the world.

Because it sounds a little bit too optimistic, the consultancy firm even has some explanations for this, claiming that the current investments that take place in Russia will pay back in the years to come. Foreign partnerships, huge investments in local plants and, last but not least, the beginning of production of new models in Russia are to support the country's evolution in the future.

To give you an idea on how Russia currently performs, the country sold 1.91 million vehicles in 2010, up 30 percent from 2009 but down 34 percent as compared to sales registered before the crisis ignited in Europe.