The future of the Russian car market: why experts are optimistic and drivers shocked
February 21, 2023
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One after the other, the car market experts are showing their confidence that production and especially car sales will increase significantly this year. They would drink honey with
One after the other, the car market experts are showing their confidence that production and especially car sales will increase significantly this year. They would drink honey with their mouths! But the saddest thing is not at all that almost all of these predictions are based on a shaky foundation of conjecture and assumptions. The problem is different – during the analysis process, one fundamental thing is lost sight of, which is extremely important for any car owner.
The future is shrouded in mystery. It is all the more interesting to try to lift it and look into the forbidden. And if people want to know what’s going to happen, there will always be people who will try to meet the demand with the supply. Based on mathematical models, on intuition, or even just by chance, many experts authoritatively tell us what to expect in this future, which seems dull and two-dimensional in their calculations.
When statistics don’t lie
The director of the Avtostat bureau, Sergey Tselikov, based on a thorough analysis of statistics, assured Russian motorists that from April the car market would begin to show growth, which would last until the whole of 2023. But can this happen?
Probably, maybe. We will not consider the “significant” contribution to the resuscitation of the hyped electric vehicle industry – in significance it is comparable to the contribution of horse transport. But the Chinese will bring their good car and a cart. And AVTOVAZ will put a lot of pressure, for once try not to cheat the people and give out the promised 400,000 cars. The rest of the domestic factories and factories, you see, also sound something. Good people will import their crumbs into Russia at the same time. Together, all of the above participants in the domestic auto market will gain strength and deliver a 25% growth theoretically allowed by the operational director of Geely Motors Russia Valery Tarakanov.
But even these percentages are tears against the background of what the market really needs. According to experts, for the normal functioning of the auto industry, it is necessary to sell more than 1.6 million cars per year. The most optimistic forecasts do not aim for more than 900,000 units, and even that is highly doubtful.
Alternative absence
And in general, this is not the main thing. A terrible shortage of new passenger cars is complemented by a total lack of alternatives, with all the apparent wealth of choice. Want to buy something cheap and simple? Chinese and LADA. And you can forget about cheap for a long time. Want something visually appealing and original? Chinese and LADA. And you can forget about the attractive for a long time. Do you want something sturdy, filled with electronic systems and everyone’s envy? Chinese without LADA. And you can forget about the jealous for a long time.
Last January, according to the agency “AUTOSTAT”, 2295 Kia cars were sold, which is 85% less than in the same month last year. This is 5.1% of the market volume. That’s where the budget segment’s long-term leader has slipped. Stylish Mazda sold 354 cars, equivalent to 0.7% of all new cars. Nissan, specializing in buyers who wanted the strange, took 5% of the market. Toyota, the dream of Japanophiles, quietly dropped to a ludicrous 2.2%. Clearly BMW and Mercedes-Benz pulled out 0.8% and 0.7% respectively.
And only gray days
The share of premium cars, which for a long time was about 10% according to the calculations of the same “Avtostat”, collapsed to 3%. I don’t give a damn about the suffering of the majors left without cool cars – especially since they’re going to get theirs one way or another. But I regret that the automotive world suddenly lost its diversity and ability to surprise with something new, beautiful, aesthetically perfect.
You don’t have to remind me of sanctions – I don’t suffer from amnesia. It is not at all about why everything happened the way it did, but about what we actually have now. And we now have a homogeneous mass of cars, where the difference between what is considered ordinary consumer goods and what is declared luxury-exclusive is not visible based on previous experience. So before we talk about the growth or decline of the new car market, it makes sense to look at the quality, not the quantity. And with regret make sure it is not there, this quality. No vacation of the soul – only gray everyday life.
Photo: globallookpress.com
Photo: globallookpress.com
The future is shrouded in mystery. It is all the more interesting to try to lift it and look into the forbidden. And if people want to know what’s going to happen, there will always be people who will try to meet the demand with the supply. Based on mathematical models, on intuition, or even just by chance, many experts authoritatively tell us what to expect in this future, which seems dull and two-dimensional in their calculations.
When statistics don’t lie
The director of the Avtostat bureau, Sergey Tselikov, based on a thorough analysis of statistics, assured Russian motorists that from April the car market would begin to show growth, which would last until the whole of 2023. But can this happen?
Probably, maybe. We will not consider the “significant” contribution to the resuscitation of the hyped electric vehicle industry – in significance it is comparable to the contribution of horse transport. But the Chinese will bring their good car and a cart. And AVTOVAZ will put pressure on it, for once trying not to cheat the people and handing out the promised 400,000 cars. The rest of the domestic factories and factories, you see, also sound something. Good people will import their crumbs into Russia at the same time. Together, all of the above participants in the domestic auto market will gain strength and deliver a 25% growth theoretically allowed by the operational director of Geely Motors Russia Valery Tarakanov.
But even these percentages are tears against the background of what the market really needs. According to experts, for the normal functioning of the auto industry, it is necessary to sell more than 1.6 million cars per year. The most optimistic forecasts do not aim for more than 900,000 units, and even that is highly doubtful.
Alternative absence
And in general, this is not the main thing. A terrible shortage of new passenger cars is complemented by a total lack of alternatives, with all the apparent wealth of choice. Want to buy something cheap and simple? Chinese and LADA. And you can forget about cheap for a long time. Want something visually appealing and original? Chinese and LADA. And you can forget about the attractive for a long time. Do you want something sturdy, filled with electronic systems and everyone’s envy? Chinese without LADA. And you can forget about the jealous for a long time.
Last January, according to the agency “AUTOSTAT”, 2295 Kia cars were sold, which is 85% less than in the same month last year. This is 5.1% of the market volume. That’s where the budget segment’s long-term leader has slipped. Stylish Mazda sold 354 cars, equivalent to 0.7% of all new cars. Nissan, specializing in buyers who wanted the strange, took 5% of the market. Toyota, the dream of Japanophiles, quietly dropped to a ludicrous 2.2%. Clearly BMW and Mercedes-Benz pulled out 0.8% and 0.7% respectively.
And only gray days
The share of premium cars, which for a long time was about 10% according to the calculations of the same “Avtostat”, collapsed to 3%. I don’t give a damn about the suffering of the majors left without cool cars – especially since they’re going to get theirs one way or another. But I regret that the automotive world suddenly lost its diversity and ability to surprise with something new, beautiful, aesthetically perfect.
You don’t have to remind me of sanctions – I don’t suffer from amnesia. It is not at all about why everything happened the way it did, but about what we actually have now. And we now have a homogeneous mass of cars, where the difference between what is considered ordinary consumer goods and what is declared luxury-exclusive is not visible based on previous experience. So before we talk about the growth or decline of the new car market, it makes sense to look at the quality, not the quantity. And with regret make sure it is not there, this quality. No vacation of the soul – only gray everyday life.
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.