Da! Oil Rich Russians are Snapping up American SUVs
With American S.U.V. sales at an all time low and owners unable to sell them, manufacturers have had to come up with new market. Right now that market is in Russia.
Russia, with a population of over 150 Million people, may not sound like the greatest market, but the fact that less than 20 percent of the population even owns a vehicle, makes it huge rife for potential. According to Pricewaterhousecoopers LLP, Russian bought 1.6 million vehicles in the first six months of the year, a 40 per increase from the first half of 2007. Well, to begin with, gas cost’s more than half as much than in most Western European Markets. Add in the fact that their economy is growing from between 6 and 8 percent annually, partly do to swelling commodity prices on its vast oil reserves, and the countries notoriusly rough roads and winters, and you have a mix ripe with possibilities.
Though Russia’s economy is doing well, housing continues to be very cost prohibitive to a great portion of the population. Not everyone can afford decent housing, and a lot of people have actually invested their money in high end S.U.V.’s to live in.
As with any society that is going through burgeoning growth, Russian consumers have become very brand conscience, and you can be sure that American Auto Manufacturers will be there to make sure that even they, can have a piece of the American Way.
