Between January and June, 719,311 new cars were sold in the country.
Photo: Shutterstock.
Do you think that the Russian car market has collapsed? Everything was exactly like that a couple of years ago. Even last year it seemed that Russia would have to recover for many years to reach its previous values, for example, the level of 2021 (1.67 million cars sold per year). But here are the latest statistics: 719,311 new cars were sold in the country between January and June. And this is 79% more than in the same period in 2023. These data are provided by the Autostat agency. The leader among manufacturers is still the domestic Lada (207,404 cars) – this accounts for 29% of the domestic passenger car market. The top five also included the Chinese Haval, Chery, Geely and Changan.
RETURN TO NORMAL LEVEL
“This trend is something we cannot but be pleased about,” says Igor Morzharetto, an automotive expert and partner at the Autostat analytical agency. “But the current impressive figures speak of a low base of recent years. Now, in fact, we are just returning to a more or less acceptable market level. If the trend continues, 1.5-1.6 million new cars will be sold in Russia by the end of the year.”
Interestingly, the increase in sales is taking place against the backdrop of a decline in the number of car loans issued. At the end of June, the volume of loans in quantitative terms decreased by 18%, in monetary terms – by 10% compared to May. At the same time, many car manufacturers have reduced prices since the beginning of the year and have also introduced new models on the market, offering customers a wider choice.
“In addition to the low base and pent-up demand, the strong sales increase this year was also influenced by a factor such as a series of negative news suggesting a further rise in prices,” adds Jan Heizeer, vice president of the National Automobile Federation. – “Such as, for example, rising interest rates, tightening customs duties and increasing recycling fees. People realised that cars would not be significantly cheaper, but could become more expensive again, and this also stimulated sales.”
If we talk about specific models, the most popular among the models were Lada Granta and Lada Vesta, and sales of the latter increased by almost 15 times: from 3,969 to 62,192 units, if we compare the first half of 2023 and 2024.
“Here we must remember that AvtoVAZ at one point had difficulties with components, which is why they had to refuse to install airbags, CVT, and at some point completely stop the production line. Now that these problems have been solved, many popular options have returned to Vesta, and at the same time it remains cheaper than its Chinese counterparts, both in terms of purchase and maintenance. Hence the explosive growth in sales of the model,” notes Jan Heitzer.
THREATS TO THE MARKET
When it comes to forecasting the second half of the year, experts recommend not expecting record figures and agree that, at best, sales will be at the level of the first six months.
“There are two threats that could prevent the momentum from being maintained or even cause the market to fall again,” says Igor Morzharetto. – “The first is possible fluctuations in exchange rates. The second is another increase in the recycling rate, which is currently being discussed in the government. If it is adopted, the prices of cars manufactured abroad will increase significantly. In this case, there is no need to talk about 1.5 million copies sold.”
“We must not forget that the majority of our cars are sold on credit. At the same time, the Central Bank has set a course to reduce the number of bad loans. Therefore, in addition to high interest rates, lending conditions are also being severely tightened,” says Jan Heitzer. “This could lead to a decline in sales. However, large companies can develop and offer their customers some alternative financial instruments, such as hire purchase. I believe that, if there are no serious disturbances on the foreign exchange market, around 1.5 million new cars will be sold in Russia by the end of the year.”
NEW NAMES
Among the top 10 most popular manufacturers are the brands Belgee and Jaecoo, which were absent from our market last year. Where do they come from?
Jaecoo is another Chery brand (which also includes, notably, Exeed, Omoda and Jetour). It was conceived as a manufacturer of premium crossovers specifically for deliveries to Europe, Russia and the Middle East. Introducing the J7 and J8 models, which are essentially converted versions of the Chery Tansuo and Chery Tiggo 9 sold solely in China.
Belgee is a brand of a Sino-Belarusian joint venture located in the Minsk region. Geely models are assembled here, but under its own brand. Our most popular Belgee X50, which closes the top 10 of the best-selling cars, is none other than the Geely Coolray, beloved by Russian drivers. Only with a different logo.
