Russia's automotive market could grow by 12 percent in 2017. The head of Kia Motors Alexander Moinov believes that the Russian market due to the growth of the economy recovered from the crisis faster than expected.

Over the past two years one of the fastest growing automotive markets of Russia became one of the biggest victims of the crisis. The growth prospects of the industry have a clear outline for economic growth this year.

Speaking at an investment summit Reuters Russia on Friday, Moinov said that the market growth is expected to continue into 2018, and forecast sales to 1.8 million cars.

"We think that will have a positive trend in macroeconomic factors that will affect consumer incomes," he said at the summit in the Reuters office in Moscow.

Kia and its sister company, Hyundai Motor focused on low prices to boost market share during the recession.

According to AEB, in January-August of this year, Kia sales accounted for 11.9 percent of total sales in the UK, which is 10.4 percent more than in the same period last year. Kia is the brand number 2 in the market after the Lada.

"We set a goal to increase market share ... All focused on this strategy," said Moinul. "If we are going to manage a 12 percent market share by year-end, it will be good".

Moinov said that lower lending rates helped to bolster sales this year, 45-50 percent of vehicle purchases now comes in the loan.

Last week, the Russian Central Bank lowered its key rate to 8.5% versus 10% in the beginning of the year.

"Currently we are seeing a positive trend in this market". The share of sales in the loan increases for all manufacturers of cars, " he said. "When credit becomes cheaper, then maybe people will stop waiting and finally buy a car."
sections: Economics