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Sales statistics on the country’s car market may at first glance be of interest only to specialists. If you wisely approach the published data for the three quarters
The Association of European Businesses has once again published a report on the state of the Russian car market – based on the results of last September and the third quarter of 2023. In short: in January-September we sold almost 43% more new passenger cars and light commercial vehicles than in the same period of 2022. And last September showed a 120 percent increase in sales compared to the first month of autumn last year.
In absolute numbers, according to PPK JSC data, this concerns 761,148 and 116,324 cars respectively. Against the background of last year’s “rot and decay” of the Russian car market, such results can only be pleased. The Ministry of Economic Development has already predicted that we will sell 1.059 million passenger cars in 2023. Compared to the 606,860 cars sold on the Russian car market in 2022, this looks encouraging.
But a serious skeptical worm burrows in the depths of this statistical grace. The devil, as we know, is in the details. The main one is connected to AVTOVAZ. Statistics say that he is one of the leaders in the passenger car market: he sold 242,552 LADA cars in three quarters of this year. In September there were no less than 36,000 record production units. The manufacturer itself reports that in September 2023, all three production lines in Tolyatti worked at maximum intensity and produced 46,909 cars.
The factory’s management once repeatedly stated its intention to sell at least 400,000 passenger cars by 2023. However, these plans are already clearly under threat. Even if the Russian manufacturer’s sales increase even more. In order to implement its plans, the company must sell approximately 160,000 LADAs in the remaining quarter.
That means a minimum of 52,000 per month with a maximum factory productivity of 47,000 production units. And if sales remain at September levels, AVTOVAZ will only be able to sell about 350,000 cars in January. That is better than the 188,645 units for 2022, but clearly below the level announced at the beginning of this year.
No less interesting is the marketing relationship between our main domestic car manufacturer and their Chinese ‘colleagues’. It is clear to everyone that brands from China are taking over the Russian car market en masse. They are not prevented from doing so by protective import duties or by the greatly increased recycling contribution initiated by AVTOVAZ.
Chery alone (with all its sub-brands) sold almost 147,000 cars in Russia in nine months. This is no less than 60% of the performance of AVTOVAZ! In total, the main suppliers of the Chinese passenger car industry to Russia – Chery Group, Great Wall Motors Group and Geely – added about 305,000 units of equipment to the domestic market in the three quarters of 2023.
If we translate this into percentages, LADA now has 31.9% of the market, Chery Group – 19.3%, GWM Group – 10.1%, Geely – 7.6%. That is, the main “Chinese” control 37% of the Russian mass passenger car market. First of all, this is noticeably more than that of AVTOVAZ. And secondly, almost all (!) Chinese cars are in the price segment of 2.5-4 million rubles. While the Togliatti car plant “plays” in the segment “up to 2 million rubles”. That is, the turnover of Chinese brands in Russia is already clearly and much greater than the turnover of the LADA manufacturer.
You may also recall that most of the “Chinese” products sold here are produced outside the borders of Russia. As a result, almost half of their sales price consists of customs and recycling fees that go directly to the federal budget. AVTOVAZ only sends VAT and social security contributions there. If we abstract from the system-forming role of the Tolyatti car giant for industry, city formation and other matters, it turns out that “according to accounts” the banal import of finished Chinese vehicles is much more profitable for the country’s budget than LADA production -cars.
And this is very bad news for you and me. Because it illustrates the hopeless economic inefficiency and irreparable technological backwardness of our auto industry. It turns out that it is easier to shoot him, so as not to suffer and turn to the Chinese for normal cars… The scary thing is that at a nice moment someone in the Russian leadership can seriously make such an accounting correction come idea.
The Association of European Businesses has once again published a report on the state of the Russian car market – based on the results of last September and the third quarter of 2023. In short: in January-September we sold almost 43% more new passenger cars and light commercial vehicles than in the same period of 2022. And last September showed a 120 percent increase in sales compared to the first month of autumn last year.
In absolute numbers, according to PPK JSC data, this concerns 761,148 and 116,324 cars respectively. Against the background of last year’s “rot and decay” of the Russian car market, such results can only be pleased. The Ministry of Economic Development has already predicted that we will sell 1.059 million passenger cars in 2023. Compared to the 606,860 cars sold on the Russian car market in 2022, this looks encouraging.
But a serious skeptical worm burrows in the depths of this statistical grace. The devil, as we know, is in the details. The main one is connected to AVTOVAZ. Statistics say that he is one of the leaders in the passenger car market: he sold 242,552 LADA cars in three quarters of this year. In September there were no less than 36,000 record production units. The manufacturer itself reports that in September 2023, all three production lines in Tolyatti worked at maximum intensity and produced 46,909 cars.
The factory’s management once repeatedly stated its intention to sell at least 400,000 passenger cars by 2023. However, these plans are already clearly under threat. Even if the Russian manufacturer’s sales increase even more. In order to implement its plans, the company must sell approximately 160,000 LADAs in the remaining quarter.
That means a minimum of 52,000 per month with a maximum factory productivity of 47,000 production units. And if sales remain at September levels, AVTOVAZ will only be able to sell about 350,000 cars in January. That is better than the 188,645 units for 2022, but clearly below the level announced at the beginning of this year.
No less interesting is the marketing relationship between our main domestic car manufacturer and their Chinese ‘colleagues’. It is clear to everyone that brands from China are taking over the Russian car market en masse. They are not prevented from doing so by protective import duties or by the greatly increased recycling contribution initiated by AVTOVAZ.
Chery alone (with all its sub-brands) sold almost 147,000 cars in Russia in nine months. This is no less than 60% of the performance of AVTOVAZ! In total, the main suppliers of the Chinese passenger car industry to Russia – Chery Group, Great Wall Motors Group and Geely – added about 305,000 units of equipment to the domestic market in the three quarters of 2023.
If we translate this into percentages, LADA now has 31.9% of the market, Chery Group – 19.3%, GWM Group – 10.1%, Geely – 7.6%. That is, the main “Chinese” control 37% of the Russian mass passenger car market. First of all, this is noticeably more than that of AVTOVAZ. And secondly, almost all (!) Chinese cars are in the price segment of 2.5-4 million rubles. While the Togliatti car plant “plays” in the segment “up to 2 million rubles”. That is, the turnover of Chinese brands in Russia is already clearly and much greater than the turnover of the LADA manufacturer.
You may also recall that most of the “Chinese” products sold here are produced outside the borders of Russia. As a result, almost half of their sales price consists of customs and recycling fees that go directly to the federal budget. AVTOVAZ only sends VAT and social security contributions there. If we abstract from the system-forming role of the Tolyatti car giant for industry, city formation and other matters, it turns out that “according to accounts” the banal import of finished Chinese vehicles is much more profitable for the country’s budget than LADA production -cars.
And this is very bad news for you and me. Because it illustrates the hopeless economic inefficiency and irreparable technological backwardness of our auto industry. It turns out that it is easier to shoot him, so as not to suffer and turn to the Chinese for normal cars… The scary thing is that at a nice moment someone in the Russian leadership can seriously make such an accounting correction come idea.
Source: Avto Vzglyad
Donald Salinas is an experienced automobile journalist and writer for Div Bracket. He brings his readers the latest news and developments from the world of automobiles, offering a unique and knowledgeable perspective on the latest trends and innovations in the automotive industry.
