Belarusian Car Market Shrunk by 83% in May

Belarus is expecting a shortage of cars.

Belarusian car market shrunk by 83% in May compared with the same month last year. Only 629 new cars were sold in May, reported the BAA. The sales fell by 30% compared with April.

A total of 10,606 cars and light commercial vehicles were sold over the five months, down 41% from the same period last year.

BAA attributes the decline in sales to changes in car prices and deteriorating credit conditions. In recent years, vehicles made in Russia accounted for up to 70% of sales in the country. Since March, manufacturers raised prices by 40-70%, and the subsequent growth of the Russian ruble led to a further rise in price, which reached 95%.

"Such trends are typical not only for Belarus but also for the car markets of Russia and Kazakhstan. Moreover, there are all preconditions for the situation to worsen. Given that most of the car plants in Russia have stopped production, buyers in Belarus may face shortages of cars in the coming months," the BAA said.

According to the association, service is now the major source of income for car dealers.