KamAZ Retains Over 50% Market Share

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KamAZ Press Release / March 25, 2015

Russian truckmaker KamAZ announced its truck sales for the January-February period in the 14 to 40 metric ton GVW range (30,865lb to 88,185lb) reached 2,300 units, a 48 per cent decline from the same period last year.

The company’s market share came in at 52 per cent.

During the two month period, overall truck sales in Russia’s 14 to 40 ton GVW segment reached 4,500 units.

The company blames the sales decline on a weakened economy, reduction in fixed asset investments, fall in the construction industry output, lower price-per-barrel for Urals crude oil resulting in a sales drop to the petroleum sector, growing inflation and devaluation of the ruble against the dollar and Euro.

In addition, the Russian Federation’s central bank significantly raised its key interest rate at the end of last year, reducing Russian companies' access to international financial resources. This led to a decline in the availability of credit and leasing.

The sales drop was also caused by the expiration of a government stimulus program that provided customers with up to a US$8,722 discount on new truck purchases. The truck recycling program promoted the replacement of older trucks and buses with newer vehicles offering cleaner exhaust emissions.

KamAZ expects the Russian truck market’s 14 to 40 ton GVW segment to reach 51,000 units in 2015.

Spurred by sales of its new 5490 Series on-road long-haul tractor range and growing demand for natural gas-powered vehicles in the municipal segment, the truckmaker is forecasting to sell 26,000 thousand vehicles in 2015 and end the year with a 51 per cent market share.

With the market condition expected to gradually stabilize, the Central Bank has announced a key rate reduction which will open up more credit and leasing opportunities and support renewed growth in the housing market, agricultural, industrial and fuel-energy sectors.

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