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The New Year holidays are over, domestic companies plunge into everyday work. Analytical bureaus and business communities gathered and summarized the sad results of the Russian auto industry.
It’s not just the final numbers that characterize the landslide in production and sales over 12 months. There are no special surprises – everything more or less fits into the framework previously assumed. For example, according to the Avtostat agency, the number of passenger cars and light commercial vehicles purchased in Russia fell by 58% compared to the previous year. Strong, right? But most market participants predicted such a drop – somewhere between 50% and 70% in the red. However, if you look closely at the details, the remnants of optimism, if any, will disappear.
First of all, sales literally fell for all brands – not just those who fled Russia for fear of incurring the wrath of their American uncle, and not just those who froze their businesses until better times. But those who remained entirely on the market, either with their own production or with their imports, flew by. Only two brands managed a plus – Chinese of course: Geely with a totally unconvincing 8.4% and Exeed with 353.5% due to the low base effect.
The second reason to be angry is that last year one of the locomotives of the automotive industry, AVTOVAZ, was not even able to carry out the plans drawn up by itself. The leadership of the auto giant assured that, despite the difficult situation, the subordinate company would gather strength and produce 220,000 cars.
Naturally, the experts of the AvtoVzglyad portal, observing the dynamics of sales from month to month, doubted the reality of this project. And they turned out to be right – according to the Association of European Businesses, which is very loyal to manufacturers, only 188,645 Lads left the Togliatti conveyors, and according to the calculations of the Avtostat bureau, based on the registration of new cars, there were only 174,688 of them.
The third sad point worth bearing in mind is this. Of all the cars produced in 2022, almost half of those companies that only worked at full capacity for the first two months came, and the rest of the time they either collected money or were stunned. In both cases, warehouse stocks or machines assembled from previously imported components were sold for most of the year. In other words, this year this market segment will confidently lean towards zero.
Let’s move on. The purchasing power of the population began to decline. In 2021, private individuals bought 81% of cars, while legal entities only bought 19%. In the past year, there has been a clear shift in favor of “Yuriks” – they already accounted for 24%, and “Physicists” reached 76%. The domestic car industry was supported by companies that had to renew the fleet of taxis and carsharing.
But maybe the point here is not at all about the impoverishment of the masses, but about the fact that people are used to cars of a slightly different quality than they tried to sell? Maybe they wanted real German or real Japanese quality, and not Chinese at all? Maybe they just didn’t get excited about buying a car without ESP, ABS and airbags?
Unfortunately, statistics cast doubt on this. Very disturbing data on insurance was published by the Central Bank of the Russian Federation. If 35,328,361 OSAGO policies were sold in 2021, then in the past – only 16,274,792. That is, every second Russian driver drove without a policy or with a false document. And only those who have to pay the last money for insurance can take such a step.
It’s not just the final numbers that characterize the landslide in production and sales over 12 months. There are no special surprises – everything more or less fits into the framework previously assumed. For example, according to the Avtostat agency, the number of passenger cars and light commercial vehicles purchased in Russia fell by 58% compared to the previous year. Strong, right? But most market participants predicted such a drop – somewhere between 50% and 70% in the red. However, if you look closely at the details, the remnants of optimism, if any, will disappear.
First of all, sales literally fell for all brands – not just those who fled Russia for fear of incurring the wrath of their American uncle, and not just those who froze their businesses until better times. But those who remained entirely on the market, either with their own production or with their imports, flew by. Only two brands achieved a plus – Chinese of course: Geely with a totally unconvincing 8.4% and Exeed with 353.5% due to the low base effect.
The second reason to be angry is that last year one of the locomotives of the automotive industry, AVTOVAZ, was not even able to carry out the plans drawn up by itself. The leadership of the auto giant assured that, despite the difficult situation, the subordinate company would gather strength and produce 220,000 cars.
Naturally, the experts of the AvtoVzglyad portal, observing the dynamics of sales from month to month, doubted the reality of this project. And they turned out to be right – according to the Association of European Businesses, which is very loyal to manufacturers, only 188,645 Lads left the Togliatti conveyors, and according to the calculations of the Avtostat bureau, based on the registration of new cars, there were only 174,688 of them.
The third sad point worth bearing in mind is this. Of all the cars produced in 2022, almost half of those companies that only worked at full capacity for the first two months came, and the rest of the time they either collected money or were stunned. In both cases, warehouse stocks or machines assembled from previously imported components were sold for most of the year. In other words, this year this market segment will confidently lean towards zero.
Let’s move on. The purchasing power of the population began to decline. In 2021, private individuals bought 81% of cars, while legal entities only bought 19%. In the past year, there has been a clear shift in favor of “Yuriks” – they already accounted for 24%, and “Physicists” reached 76%. The domestic auto industry was supported by companies that needed to renew the taxi and car sharing fleets.
But maybe the point here is not at all about the impoverishment of the masses, but about the fact that people are used to cars of a slightly different quality than they tried to sell? Maybe they wanted real German or real Japanese quality, and not Chinese at all? Maybe they just didn’t get excited about buying a car without ESP, ABS and airbags?
Unfortunately, statistics cast doubt on this. Very disturbing data on insurance was published by the Central Bank of the Russian Federation. If 35,328,361 OSAGO policies were sold in 2021, then in the past – only 16,274,792. That is, every second Russian driver drove without a policy or with a false document. And only those who have to pay the last money for insurance can take such a step.
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.
