Jeep Sales Drop a Whopping 84 Percent in Russia
Dealers in Russia blame being stuck with outdated models in the strong SUV market.
It sounds like Jeep’s attempts to win over Russian buyers isn’t panning out too well.
Then, again, it actually appears that it might be more of a lack of interest in the market, as detailed in an WardsAuto report. According to Mikhail Gevorkov, owner of Autocenter Aurora, one of Russia’s largest auto dealers, Fiat Chrysler Automobiles hasn’t even been supplying the market with updated versions of popular Jeeps.
In fact, the issue prompted Gevorkov to terminate his contract with FCA. It also led another Jeep dealer in Russia to end an agreement with the carmaker in 2016.
CHECK OUT: What Forum Members Are Saying About the Poor Sales Numbers
The lack of new vehicle deliveries is suspected to be a major reason that Jeep sales have been on such a steady decline in the country. According to WardsAuto data, Jeep sales in Russia have dropped from 8,221 in 2014 to only 1,269 in 2016, a roughly 84% drop. What makes that sales decline even more significant is the fact that SUVs and CUVs are really popular with Russian consumers.
The Wards report also notes that pricing might be playing a major factor in the sales decline. Take, for example, the Grand Cherokee. It’s priced at RR2.8 million ($52,000 USD), which is considered expensive by the local standards in Russia. The least expensive Jeep model sold there is the Renegade, with a base price of RR1.46 million ($25,600). Jeep also sells a limited version of the Wrangler Unlimited.
Apparently, FCA had plans to build a Jeep plant in Russia a couple of years ago. But an economic downturn in the country prompted the carmaker to shelf the project.
Our guess is that given today’s’ political climate, it could be some years before Jeep makes any serious investment in the Russian market.