Russians favour 4x4s despite oil price jump
Published 19 June, 2008, 04:51
Oil prices have hit another record high this week, reaching almost $US 140 per barrel. While the rising costs have hit worldwide sales of 4-wheel-drives, in Russia gas-guzzlers are as popular as ever. More than 400,000 were sold in Russia last year, almost twice as many as 2006.
The price of petrol has gone up by 25% since the beginning of the year.
But Moscow's car dealers say they have noticed few changes in buyers' attitudes.
“Our clients are not the kind of people who buy a car thinking about the price of petrol. They want to be seen in a certain way, and they desire a specific car model,” said Sergey Titov, a dealership manager.
Yulia is a best-selling novelist and drives a Hummer. It may cost a hundred dollars to fill up the tank, but that's the least of Yulia's concerns.
“I've dreamt about this car for a long time. It was either a red Hummer or nothing. I had to wait a year to have it delivered from America,” she said.
But others, like Polina Dubrovina, an environmental activist, are campaigning for smaller cars, like the Opel she drives.
“It's small, it's economical, and I don't use a lot of gasoline, and it's better for our environment,” she said.
Russians are being spurred on in their spending by a prolonged period of economic growth, and the availability of easy finance for the first time in their lives.
Still, impressive off-roaders have more to do with status than with their ability to negotiate difficult terrain.
For the moment, Russia is likely to continue bucking world trends of record oil prices and smaller cars.
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