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Car manufacturers fled home: what awaits Russian car dealers

  • November 16, 2022
  • 0

The car market, as you know, includes not only factories and large importers, but also dealers, on whose shoulders, in fact, lay the main mission of supplying cars

Car manufacturers fled home: what awaits Russian car dealers
The car market, as you know, includes not only factories and large importers, but also dealers, on whose shoulders, in fact, lay the main mission of supplying cars to a specific buyer. What fate threatens this thick but unproductive layer, the AvtoVzglyad portal understood.

Behind the groans and regrets about the once-blooming boom of Russian motorsport dying in the bud, the humble heroes of sales somehow forgot. Without their labor performance, even the most famous car brands would have to suck their paws, looking longingly at warehouses filled with unsold products. Yes, dealers also fell under distribution. Of course, it is a pity for the employees who work there, but to say that they suffered innocently is hardly correct.

Together with manufacturers and importers, car dealers warmed up quite a bit under the rising sun of the domestic market, which once had the ambition to become the first in Europe. With all their might they inflated the credit bubble of the purchasing power of the population, blatantly raised prices, using the slightest hint for this and very ingeniously invented excuses for themselves – fortunately, our people are gentle and gullible.

Well, when the era of prosperity ended, it suddenly turned out that dealers, like local manufacturers, had no western technologies in their stock that could be used for their own benefit, and no idea how to live.

Meanwhile, everyone wants to live, and car dealerships are no exception in this regard. During the period of relative stability, their number in Russia has grown to 3203 – at least this number for April 2022 is given by a study conducted by the Avtostat agency. Note that they were enough to serve nearly fifty brands that worked optimally.

After six months, marked by increasing sanctions, the rows of dealers have practically not thinned. There are still more than 3000 of them. However, the number of brands actually represented in Russia has fallen catastrophically – there are barely a dozen of them. In addition, it also includes half-dead people who sell a hundred or two of their cars a month, and sometimes even less. There was not enough food for everyone.

And this is where you instruct dealers, who are used to being more or less comfortable and not counting the last penny under the threat of a complete cessation of sales? For the Chinese, of course. Who, if not our neighbors from behind the Great Wall, are simply beholden to help us survive? Hoping for this, the number of China salons rose sharply to 936, as the AvtoVzglyad portal already wrote.

But the dreams of those who want to sell in some way do not match the plans of those who want to produce. Our “brothers forever” are in no hurry to go to Russia, they ignore shamanic dances with incantation. The increase in turnover compared to last year is ridiculous. Living cars are scarce. The prices are definitely overpriced. The margins of car dealers are low.

Chinese cars will certainly not be enough for the remaining 2,000 car dealers, which have not yet found a home. However, from them it is necessary to subtract those lucky ones who were lucky enough to cling to the domestic auto industry – AVTOVAZ with UAZ. So far there are 541, according to information from last summer.

The rest stretch their last stock as best they can, earn a little extra money on maintenance, and hope that the old days will return before their business collapses. However, this is very doubtful. Which exit? It’s hard to say. It’s probably time to retrain as a house manager.

Besides. It is worth paying attention to Aurus, which is rumored to have only two dealers in Russia…

Photo: AvtoVzglyad
Photo: AvtoVzglyad

Behind the groans and regrets about the once-blooming boom of Russian motorsport dying in the bud, the humble heroes of sales somehow forgot. Without their labor performance, even the most famous car brands would have to suck their paws, looking longingly at warehouses filled with unsold products. Yes, dealers also fell under distribution. Of course, it is a pity for the employees who work there, but to say that they suffered innocently is hardly correct.

Together with manufacturers and importers, car dealers warmed up quite a bit under the rising sun of the domestic market, which once had the ambition to become the first in Europe. With all their might they inflated the credit bubble of the purchasing power of the population, blatantly raised prices, using the slightest hint for this and very ingeniously invented excuses for themselves – fortunately, our people are gentle and gullible.

Well, when the era of prosperity ended, it suddenly turned out that dealers, like local manufacturers, had no western technologies in their stock that could be used for their own benefit, and no idea how to live.

Meanwhile, everyone wants to live, and car dealerships are no exception in this regard. During the period of relative stability, their number in Russia has grown to 3203 – at least this number for April 2022 is given by a study conducted by the Avtostat agency. Note that they were enough to serve nearly fifty brands that worked optimally.

After six months, marked by increasing sanctions, the rows of dealers have practically not thinned. There are still more than 3000 of them. However, the number of brands actually represented in Russia has fallen catastrophically – there are barely a dozen of them. In addition, it also includes half-dead people who sell a hundred or two of their cars a month, and sometimes even less. There was not enough food for everyone.

And this is where you order dealers to go, who are used to being more or less comfortable and not counting the last penny under the threat of a complete cessation of sales? For the Chinese, of course. Who, if not our neighbors from behind the Great Wall, are simply beholden to help us survive? Hoping for this, the number of China salons rose sharply to 936, as the AvtoVzglyad portal already wrote.

But the dreams of those who want to sell in some way do not match the plans of those who want to produce. Our “brothers forever” are in no hurry to go to Russia, they ignore shamanic dances with incantation. The increase in turnover compared to last year is ridiculous. Living cars are scarce. The prices are definitely overpriced. The margins of car dealers are low.

Chinese cars will certainly not be enough for the remaining 2,000 car dealers, which have not yet found a home. However, from them it is necessary to subtract those lucky ones who were lucky enough to cling to the domestic auto industry – AVTOVAZ with UAZ. So far there are 541, according to information from last summer.

The rest stretch their last stock as best they can, earn a little extra money on maintenance, and hope that the old days will return before their business collapses. However, this is very doubtful. Which exit? It’s hard to say. It’s probably time to retrain as a house manager.

Besides. It is worth paying attention to Aurus, which is rumored to have only two dealers in Russia…

Source: Avto Vzglyad

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