Automakers have warned that a rise in VAT rates for automobiles would significantly effect burgeoning car sales.
According to the Russian branch of South Korean carmaker Hyundai Motor Co, the auto market in the country is likely to witness a sharp slowdown in 2019.
Automakers have warned that Moscow’s plan of raising the value added tax in 2019 is likely to take a hit on car sales which have just started to recover from four years of stagnation.
Hyundai has forecast car sales in Russia to grow by 5% to 6% in 2019. In 2018, car sales in Russia grew at 12.8%, said Alexei Kalitsev, Hyundai Motor’s Russian managing director.
Hyundai plans to retain its 10% market share in Russia in 2019 while boosting its sales to 190,000 cars from 180,000 in 2018.