Car sales growth slows due to “cool down in consumer appetite”

According to the Russian business daily Kommersant (12 November 2012) citing data from the Association of European Businesses, new car sales were up 5 per cent on average in October 2012 compared to the same period in 2011 to 253,732 units, 12,804 units more than in October 2011. This represents a slowdown compared to the first nine months of the year, where sales were up 14 per cent compared to the same period in 2011.

Chairman of the Automobile Manufacturers Committee Jorg Schreiber attributes the slowdown to a “cool down in consumer appetite.” Dealers also anticipate a slowdown.  Although prices may rise in the run-up to the New Year and various sales, the slowdown is likely to continue in the future, due to a reduction in purchasing power, rising interest rates and uncertainty in the economy.

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