Bogdan car production falls 2.3% m/m in July

Bogdan Motors’ (LUAZ UK) light vehicle production grew 38.5% yoy to 1,055 units in July, but fell 2.3% m/m, Interfax reported on August 8. Bus production fell 5.5% yoy to 310 units in 7M13. Overall vehicle production fell 53.8% yoy to 4,229 units in 7M13. Bogdan Motors is aiming for a 25% yoy increase in light vehicle production to 15,000 units in 2013.

Roman Dmytrenko: The introduction of special duties on car imports in April allowed Bogdan to restart its production in May, but a lack of sequential output growth in July indicates the protective measures are not enough to offset the weakness in demand for the company’s vehicles. We expect the company to underperform its production target by 40%-50% in 2013.