Sales of new construction equipment for q1 2020 in Russia increased by 8%

The Construction Equipment Committee (CEC) was created by the Association of European Businesses (AEB) in February 2008. At the moment CEC represents interests of 80% road-building and special machinery companies of the Russian market.

Comments Andrey Komov, AEB Construction Equipment Committee Chairman, Managing Director, Volvo CE Russia:

“Market figures of the Q1 do not reflect the current realities since full scale crisis situation appeared first in April. Taking into account, that due to low season Q1 dynamics is traditionally low market growth 8% seems to be good news. However, we all understand that under circumstances during the next 12+ months we will not see any market growth. Our industry was not included into the list of mostly affected by the crisis. But it does not mean that we and our end customers have not been harmed. In order not to find yourselves in a situation when there are nobody to save, it is necessary to conduct effective measures of state support already now. The overall recovery of the economy will also depend on how our end customers will go through this crisis and how quickly they will be able to recover. While the economy recovery will not be possible without further infrastructure development, housebuilding and road construction. Hardly most our customers now have money to pay utilization fee. Therefore, we plan to address the Government and the Ministry of Industry and Trade with a recommendation to cancel utilization fee payment until the end of 2020. For all machines, which are not manufactured in Russia in series, we propose to set zero utilization fee. In order to keep machines working in the current situation we propose to set customs duty for spare parts to zero until the end of 2020. Situation is worsening rapidly leaving no time for long discussions. It is very important to act fast and we hope our proposals will be heard”.