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175,000 illiquid assets: There is no more demand for Chinese cars

  • December 13, 2023
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According to the Autostat agency, based on official data on imports, production and sales, the stock of Chinese cars in Russian dealers currently amounts to 175 thousand cars.

175,000 illiquid assets: There is no more demand for Chinese cars

According to the Autostat agency, based on official data on imports, production and sales, the stock of Chinese cars in Russian dealers currently amounts to 175 thousand cars. Will this lead to a drop in their prices? That’s right, no!

As RBC reports, Executive Director of the agency “Autostat” Sergei Udalov said at a conference of the consultancy firm “Avtoboss”, devoted to the Chinese automotive industry, that dealers and distributors of “heavenly” brands began to stock up on stocks of vehicles from the PRC to build. – and in quite significant volumes. So, after ten months’ results, sales of Chinese cars in Russia amounted to 406,500 units, while 153,400 cars were assembled in factories and another 428,500 were imported.

— Now we see that from almost the summer of this year the sales level has become lower than the total of supply and production. This is what is accumulating in the warehouses of distributors and dealers,” Udalov noted, emphasizing that this should encourage dealers and distributors to “actively compete” to sell shares.

But dealers obviously disagree with this. Director of retail at Avilon, Ilya Petrov, noted that the shares justify themselves in terms of margins, so this will not affect the price cut. General Director of AutoSpetsCenter Andrei Terlyukevich expects two waves of price increases: in December and the beginning of the new year. Who would doubt, as they say…

As RBC reports, Executive Director of the agency “Autostat” Sergei Udalov said at a conference of the consultancy firm “Avtoboss”, devoted to the Chinese automotive industry, that dealers and distributors of “heavenly” brands began to stock up on stocks of vehicles from the PRC to build. – and in quite significant volumes. So, after ten months’ results, sales of Chinese cars in Russia amounted to 406,500 units, while 153,400 cars were assembled in factories and another 428,500 were imported.

— Now we see that from almost the summer of this year the sales level has become lower than the total of supply and production. This is what is accumulating in the warehouses of distributors and dealers,” Udalov noted, emphasizing that this should encourage dealers and distributors to “actively compete” to sell shares.

But dealers obviously disagree with this. Director of retail at Avilon, Ilya Petrov, noted that the shares justify themselves in terms of margins, so this will not affect the price cut. General Director of AutoSpetsCenter Andrei Terlyukevich expects two waves of price increases: in December and the beginning of the new year. Who would doubt, as they say…

Source: Avto Vzglyad

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