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The decrease in the population of Russia puts an end to the future of the domestic auto industry

  • February 1, 2023
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Rosstat statistics, published the day before, speak of the continued decline in the country’s population. The AvtoVzglyad portal analyzed it and drew its own conclusions. The population of

The decrease in the population of Russia puts an end to the future of the domestic auto industry
Rosstat statistics, published the day before, speak of the continued decline in the country’s population. The AvtoVzglyad portal analyzed it and drew its own conclusions.

The population of Russia on January 1, 2023 was 146,424,729 people. The indicator is down more than 550,000 people from last year, according to preliminary data from Rosstat. Bad news. With regard to car matters, such data cannot please. The fact is that the population is potential buyers of cars. It is clear that from these should be subtracted millions of citizens who are organically incapable of driving any means of transport, pensioners, children, poverty-stricken youth and other “contingent” uninteresting to the car dealer. Nevertheless, the total population of the country is quite suitable for assessing not only the potential of the car market, but also the very possibility of the existence of a national car industry.

For example, the population of Germany is about 82 million people. And there is a strong auto industry. Nearly 68 million citizens live in France. They also make their own cars. There are about 60 million inhabitants in Italy and there are several car factories. But, for example, only 42 million live in Spain, there are no own car manufacturers here. Only branches of foreign car manufacturers. In Russia, people are (at least for now) much taller. Already almost 147 million, but in Germany with 82 million, the car market did not fall below 2 million cars sold per year even in the worst corona years.

At a time when it barely exceeded 1.5 million cars in a much busier Russia. Against this background, I do not want to recall the results of Russian car sales in 2022 at all. If you look at the Germans, you understand that millions of Russian citizens could (theoretically!) make and buy at least 3 million cars a year! But no… Be that as it may, the drop in the total population of Russia by 550,000 last year, even taking into account the influx of millions of migrants from Ukraine, is particularly unpleasant for another reason. In 2023, according to various estimates, 400,000 to 1 million Russians will flee our country. In addition, for the most part they are financially and economically prosperous.

That is, potential owners of passenger cars. This means that even if (or “when”) the Russian auto industry decides to recover, it will miss out on at least hundreds of thousands of buyers of its products. This means stagnation and degradation of the national Russian auto industry according to the “Iranian” scenario. Unless, of course, a geopolitical miracle happens in the next few years. Like the sudden and complete collapse of the US state or the establishment of a full-fledged and deep military-economic union between Russia and China…

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The population of Russia on January 1, 2023 was 146,424,729 people. The indicator is down more than 550,000 people from last year, according to preliminary data from Rosstat. Bad news. With regard to car matters, such data cannot please. The fact is that the population is potential buyers of cars. It is clear that from these should be subtracted millions of citizens who are organically incapable of driving any means of transport, pensioners, children, poverty-stricken youth and other “contingent” uninteresting to the car dealer. Nevertheless, the total population of the country is quite suitable for assessing not only the potential of the car market, but also the very possibility of the existence of a national car industry.

For example, the population of Germany is about 82 million people. And there is a strong auto industry. Nearly 68 million citizens live in France. They also make their own cars. There are about 60 million inhabitants in Italy and there are several car factories. But, for example, only 42 million live in Spain, there are no own car manufacturers here. Only branches of foreign car manufacturers. In Russia, people are (at least for now) much taller. Already almost 147 million, but in Germany with 82 million, the car market did not fall below 2 million cars sold per year even in the worst corona years.

At a time when it barely exceeded 1.5 million cars in a much busier Russia. Against this background, I do not want to recall the results of Russian car sales in 2022 at all. If you look at the Germans, you understand that millions of Russian citizens could (theoretically!) make and buy at least 3 million cars a year! But no… Be that as it may, the drop in the total population of Russia by 550,000 last year, even taking into account the influx of millions of migrants from Ukraine, is particularly unpleasant for another reason. In 2023, according to various estimates, 400,000 to 1 million Russians will flee our country. In addition, for the most part they are financially and economically prosperous.

That is, potential owners of passenger cars. This means that even if (or “when”) the Russian auto industry decides to recover, it will miss out on at least hundreds of thousands of buyers of its products. This means stagnation and degradation of the national Russian auto industry according to the “Iranian” scenario. Unless, of course, a geopolitical miracle happens in the next few years. Like the sudden and complete collapse of the US state or the establishment of a full-fledged and deep military-economic union between Russia and China…

Source: Avto Vzglyad

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