9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
The Association of European Businesses (AEB), in case anyone has forgotten, is the main representative office of foreign investors in Russia, which was almost recognized as a foreign
However, the results that the foreign agents summarized without five minutes are also known to us without them. Another thing is that the Russian authorities look with optimism at the results achieved, and the AEB sees in these figures only the basis for its further existence. For now – just existence. Because according to the analysts, double-digit growth figures for our car market in themselves should not create optimism. Yes, they say, against the backdrop of monstrously low sales of new cars in 2022 (a paltry 690,000 units), any slight calming of the hurricane is a good thing. And the results for 2023 are 1,127,856 ‘connected’ cars, of which 937,081 are ‘official’ and 190,775 are ‘parallel imports’.
The AEB emphasizes that 16.9% of the total new fleet sold was brought in “grey”. What is the best assessment of the quality of the product (and the seller, let’s be honest) available in Russia today. Without financial instruments – loans and leasing – official sales figures would have been even sadder. But overall the market grew somehow.
But in October, a high 17% refinance rate immediately sent borrowing costs into low orbit, significantly turning off the sales tap. And if the market grew in the fourth quarter of 2022, in October-November-December of the past it only stagnated. And it will continue to do so in the first quarter of 2024. According to experts, changes will only be possible by the summer, when refinancing rates will fall – if they fall, of course. That after March 2024 is unlikely.
But in general, the low value of the national currency, high lending rates and demolition costs that cost the equivalent of one new car are a death sentence for successful sales. They will not buy at this price, or even with their own money, without borrowing money. Dealers and distributors have already noticed the trend, so the long-unprecedented grace of special offers and promotions began: discounts, discounts.
The reason for this is that there are too many warehouses to maintain: a high refinancing rate combined with new ‘scrap metal’ immediately turned the ‘seller’s market’ into a ‘buyer’s market’; it is no longer possible to play without hysteria, simply because all emotional purchases have long been made. We need something new: in the first two to three months of this year you can buy a new car with great privileges. In some cases – with very large ones, because the warehouse, we repeat, costs money.
The market is facing a transformation that has only just begun. Professionals say that in 2025-2026 we will all be very surprised by the supply and composition of cars on the road. By the end of 2024, it is expected that all automotive companies that exist in Russia today will be launched and a new base of the consumer fleet will be formed on the basis of the cars that will be produced in the same factories. As if to hear Alexey Kalitsev, the main speaker of the event and part-time executive director of Russia’s Hyundai Motor, the Korean brand’s factory in the Leningrad region came to life. Tip adopted! By the way, this question was asked and even received the answer: “Of course they come back, but not everyone.”
However, the results that the foreign agents summarized without five minutes are also known to us without them. Another thing is that the Russian authorities look with optimism at the results achieved, and the AEB sees in these figures only the basis for its further existence. For now – just existence. Because according to the analysts, double-digit growth figures for our car market in themselves should not create optimism. Yes, they say, against the backdrop of monstrously low sales of new cars in 2022 (a paltry 690,000 units), any slight calming of the hurricane is a good thing. And the results for 2023 are 1,127,856 ‘connected’ cars, of which 937,081 are ‘official’ and 190,775 are ‘parallel imports’.
The AEB emphasizes that 16.9% of the total new fleet sold was brought in “grey”. What is the best assessment of the quality of the product (and the seller, let’s be honest) available in Russia today. Without financial instruments – loans and leasing – official sales figures would have been even sadder. But overall the market grew somehow.
But in October, a high 17% refinance rate immediately sent borrowing costs into low orbit, significantly turning off the sales tap. And if the market grew in the fourth quarter of 2022, in October-November-December of the past it only stagnated. And it will continue to do so in the first quarter of 2024. According to experts, changes will only be possible by the summer, when refinancing rates will fall – if they fall, of course. That after March 2024 is unlikely.
But in general, the low value of the national currency, high lending rates and demolition costs that cost the equivalent of one new car are a death sentence for successful sales. They will not buy at this price, or even with their own money, without borrowing money. Dealers and distributors have already noticed the trend, so the long-unprecedented grace of special offers and promotions began: discounts, discounts.
The reason for this is that there are too many warehouses to maintain: a high refinancing rate combined with new ‘scrap metal’ immediately turned the ‘seller’s market’ into a ‘buyer’s market’; it is no longer possible to play without hysteria, simply because all emotional purchases have long been made. We need something new: in the first two to three months of this year you can buy a new car with great privileges. In some cases – with very large ones, because the warehouse, we repeat, costs money.
The market is facing a transformation that has only just begun. Professionals say that in 2025-2026 we will all be very surprised by the supply and composition of cars on the road. By the end of 2024, it is expected that all automotive companies that exist in Russia today will be launched and a new base of the consumer fleet will be formed on the basis of the cars that will be produced in the same factories. As if to hear Alexey Kalitsev, the main speaker of the event and part-time executive director of Russia’s Hyundai Motor, the Korean brand’s factory in the Leningrad region came to life. Tip adopted! By the way, this question was asked and even received the answer: “Of course they come back, but not everyone.”
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.
