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Should we expect new car prices to fall?

  • October 30, 2023
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Some strengthening of the Russian currency may allow new car prices to stabilize, but they are unlikely to fall. The fact is that many other factors influence costs.

Some strengthening of the Russian currency may allow new car prices to stabilize, but they are unlikely to fall. The fact is that many other factors influence costs.

As Rossiyskaya Gazeta reports, citing representatives of dealers and other industry experts, the pricing policy of car manufacturers is influenced not only by the exchange rate, but also by a number of other factors. “Including an increase in recycling costs and logistics costs for transporting cars. Therefore, prices will not fall, especially for models supplied through parallel imports. But consumers still have the opportunity to buy new cars at a profit – during special offers from manufacturers or dealers,” says independent transportation industry expert Alexey Tuzov.

Andrey Olkhovsky, general director of Avtodom Group of Companies, agrees. “We should not expect a reduction in the cost of cars. In 2023, market conditions have changed significantly. At present, the share of Chinese cars in the structure of the Russian market has grown to 46%. Now they account for 97% of all deliveries of foreign cars to Russia. By the end of the year, their share will rise to at least 60%. The exact indicators will depend on the economic and political situation, exchange rates and the availability of cars at dealers,” he said.

“Inflation and the existing supply shortage in the segment of new cars with growing demand are other reasons that they not only will not become cheaper by the end of the year, but also could add 20-30% to the price,” says Evgeniy. head of the dealer department of the car marketplace Fresh.Zhitnukhin.

As Rossiyskaya Gazeta reports, citing representatives of dealers and other industry experts, the pricing policy of car manufacturers is influenced not only by the exchange rate, but also by a number of other factors. “Including an increase in recycling costs and logistics costs for transporting cars. Therefore, prices will not fall, especially for models supplied through parallel imports. But consumers still have the opportunity to buy new cars at a profit – during special offers from manufacturers or dealers,” says independent transportation industry expert Alexey Tuzov.

Andrey Olkhovsky, general director of Avtodom Group of Companies, agrees. “We should not expect a reduction in the cost of cars. In 2023, market conditions have changed significantly. At present, the share of Chinese cars in the structure of the Russian market has grown to 46%. Now they account for 97% of all deliveries of foreign cars to Russia. By the end of the year, their share will rise to at least 60%. The exact indicators will depend on the economic and political situation, exchange rates and the availability of cars at dealers,” he said.

“Inflation and the existing supply shortage in the segment of new cars with growing demand are other reasons that they not only will not become cheaper by the end of the year, but also could add 20-30% to the price,” says Evgeniy. head of the dealer department of the car marketplace Fresh.Zhitnukhin.

Source: Avto Vzglyad

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