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The secondary car market is somewhat more easily affected by anti-Russian sanctions than the new car market, although the departure of Western companies has dealt a heavy blow.
The introduction of sanctions by our foreign ‘friends’ has hit the Russian car market painfully. Sales of new cars fell by 59% in 2022, from 1,516 thousand to 626 thousand. The end of the year 2023 could not completely correct the situation – it brought an increase to 1 million cars, and the greatest merit in this matter, of course, belongs to the “Chinese”. Eastern partners managed to organize massive deliveries of vehicles and, as a result, occupied 58% of the market, leaving 33% for domestic manufacturers, and a paltry 3% for European manufacturers, which were mainly due to the sale of warehouse balances.
The used car market suffered far less from the malice and spinelessness of the world’s auto giants. In the post-pandemic, pre-sanction year 2021, there were 5.95 million used cars registered across Russia. In 2022, their number fell by 19% – to 4.86 million pieces, and in 2023 there was another increase to 5.6 million pieces.
It can be said that the secondary market, unlike the primary one, has practically recovered. Dealers also noticed this, the smartest of which have already adapted their work. “Relatively speaking, the volume of this market is 6 million cars annually, and 1 million of them now go through dealers; cars or something more. And it turns out that this market still has enormous potential: the market can still reach 2-3 million sales through dealers,” says Kirill Larin, CEO of eCredit.
Price tags on the secondary market were changing at almost the same rate as on new cars. If the weighted average price for the latter has increased by 52% since the beginning of 2021, according to the Autostat agency, then for used copies it has increased by 49%. But this segment has more or less retained the supply structure, variety and breadth of range that we have become accustomed to over the past decade and that the new car market has suddenly lost.
But used ‘Chinese’ cars do not yet have a place in Russia. The Inssmart platform, which provides a service to insurance agents, conducted a study on the sales of European and Chinese cars from 2021 to 2023. The company’s specialists found that our compatriots began to buy Chinese cars twice as often, but that their sales volume is still 8.6 times less than that of European ones.
Of course, LADA still holds the title of the most popular brand. Of the 5,273,272 passenger cars purchased on the secondary market in the eleven months of last year, 1,156,445 were from the domestic auto giant. Toyota is in second place with 623,833 cars, followed by Korea’s Kia and Hyundai with 296 and 293 thousand respectively. Nissan closes the top five most popular brands and attracts the interest of 276 thousand buyers. There are no ‘Chinese’ even in the top ten.
As for specific models, the once super-popular Ford Focus ‘rules’ here. The second place is occupied by a specific scrap car: the LADA 2114 Samara, production of which was stopped in 2012. The third and fourth lines are occupied by the inseparable budget couple Kia Rio and Hyundai Solaris. And finally, fifth is the Toyota Corolla. The “Chinese” are again not in the top ten. However, they will still catch up – after all, until last year they were not sold in abundance in Russia, to put it mildly. But by the end of this year, they could significantly change the structure of the secondary market. But will they be taken?
The introduction of sanctions by our foreign ‘friends’ has hit the Russian car market painfully. Sales of new cars fell by 59% in 2022, from 1,516 thousand to 626 thousand. The end of the year 2023 could not completely correct the situation – it brought an increase to 1 million cars, and the greatest merit in this matter, of course, belongs to the “Chinese”. Eastern partners managed to organize massive deliveries of vehicles and, as a result, occupied 58% of the market, leaving 33% for domestic manufacturers, and a paltry 3% for European manufacturers, which were mainly due to the sale of warehouse balances.
The used car market suffered far less from the malice and spinelessness of the world’s auto giants. In the post-pandemic, pre-sanction year 2021, there were 5.95 million used cars registered across Russia. In 2022, their number fell by 19% – to 4.86 million pieces, and in 2023 there was another increase to 5.6 million pieces.
It can be said that the secondary market, unlike the primary one, has practically recovered. Dealers also noticed this, the smartest of which have already adapted their work. “Relatively speaking, the volume of this market is 6 million cars annually, and 1 million of them now go through dealers; cars or something more. And it turns out that this market still has enormous potential: the market can still reach 2-3 million sales through dealers,” says Kirill Larin, CEO of eCredit.
Price tags on the secondary market were changing at almost the same rate as on new cars. If the weighted average price for the latter has increased by 52% since the beginning of 2021, according to the Autostat agency, then for used copies it has increased by 49%. But this segment has more or less retained the supply structure, variety and breadth of range that we have become accustomed to over the past decade and that the new car market has suddenly lost.
But used ‘Chinese’ cars do not yet have a place in Russia. The Inssmart platform, which provides a service to insurance agents, conducted a study on the sales of European and Chinese cars from 2021 to 2023. The company’s specialists found that our compatriots began to buy Chinese cars twice as often, but that their sales volume is still 8.6 times less than that of European ones.
Of course, LADA still holds the title of the most popular brand. Of the 5,273,272 passenger cars purchased on the secondary market in the eleven months of last year, 1,156,445 were from the domestic auto giant. Toyota is in second place with 623,833 cars, followed by Korea’s Kia and Hyundai with 296 and 293 thousand respectively. Nissan closes the top five most popular brands and attracts the interest of 276 thousand buyers. There are no ‘Chinese’ even in the top ten.
As for specific models, the once super-popular Ford Focus ‘rules’ here. The second place is occupied by a specific scrap car: the LADA 2114 Samara, production of which was stopped in 2012. The third and fourth lines are occupied by the inseparable budget couple Kia Rio and Hyundai Solaris. And finally, fifth is the Toyota Corolla. The “Chinese” are again not in the top ten. However, they will still catch up – after all, until last year they were not sold in abundance in Russia, to put it mildly. But by the end of this year, they could significantly change the structure of the secondary market. But will they be taken?
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.
