Downturn puts brake on Russia car boom

Russia's once febrile car market is cooling in a development that could hurt struggling global carmakers in an already difficult year.
The past week's stock market turmoil and falling price of oil – Russia's economic mainstay – have left some manufacturers concerned.
Demand for cars is also slowing in China, India and Brazil, the other three big markets that until now have helped carmakers make up for flagging demand in the US, western Europe and Japan.
Analysts who cover the sector are revisiting bullish sales estimates for a country that bought 2.5m cars last year and will soon replace Germany as Europe's largest car market.
“If the oil price continues to tick down, confidence will take a hit in Russia,” said Carol Thomas, central and eastern Europe sales analyst with consultancy JD Power & Associates.
In August, car sales in Russia – damaged by the hit to sentiment following the conflict in Georgia, among other factors – grew 6 per cent year on year, down from 22 per cent in July, according to JD Power.