The Russian car market has changed beyond recognition. Production “stopped”, the structure changed, sales fell below the plinth and prices rose to cosmic heights. Even a no-brainer understands that the case is bullshit.
However, there is still light at the end of the tunnel. More precisely, it will. Unless, of course, it is lit by the Russian authorities, who seem to have already pulled matches from their pockets. Yes, the fact remains that the market will not be able to stabilize without the help of the government and regulators. How to stop stagnation without active localization of assembly processes.
At the very least, though, we’ve already influenced production, devised cumbersome ways of supplying components, and even spawned a slew of freshly baked brands. But the mass consumer is not yet feeling the activity of market players. No government subsidies, no total price drop… In general, nothing. With the exception of a temporarily organized program of preferential car loans, which affected only a small part of the cars on the market, and a point reduction in prices for individual models.
Meanwhile, the experts of the audit company B1 are confident that the Russian car market will show a noticeable start in a year and a half. According to forecasts, by 2025 we will sell more than 1,500,000 cars and in a few years sales volumes will exceed 1,700,000 units. First of all, thanks to the unhindered importation into the country of all the necessary components and, in fact, the cars themselves, as well as 60 percent localization of production. All of this will negate the resulting shortfall, albeit flavored with artificial hype, and will also trigger natural reactions in the competitive environment, which will have a positive effect on pricing.
According to the forecasts of the Ministry of Industry and Trade, 960,000 units of four-wheeled vehicles will be sold on the Russian car market by the end of 2023, although independent experts believe that these figures are too exaggerated – at best, about 630,000 vehicles will be sold .
Moreover, at the behest of Vladimir Putin, car manufacturers will have to focus not only on expensive high-margin products, but also on the mass segment, impose competition and “increase” the vehicle fleet. Along with the domestic AvtoVAZ, Chinese manufacturers have already embarked on this path, incentivizing both buyers and sellers to take action. And this, in particular, should drive the country’s automotive sector to its 2021 indicators over the next five years, according to auditors’ estimates, when just over 1,600,000 cars were sold. Unless, of course, finding a balance between supply and demand is not hindered by fluctuations in exchange rates, on which all business processes directly depend, and the financial difficulties of the United States. And they probably get in the way. And all this fall. Amen.
The Russian car market has changed beyond recognition. Production “stopped”, the structure changed, sales fell below the plinth and prices rose to cosmic heights. Even a no-brainer understands that the case is bullshit.
However, there is still light at the end of the tunnel. More precisely, it will. Unless, of course, it is lit by the Russian authorities, who seem to have already pulled matches from their pockets. Yes, the fact remains that the market will not be able to stabilize without the help of the government and regulators. How to stop stagnation without active localization of assembly processes.
At the very least, though, we’ve already influenced production, devised cumbersome ways of supplying components, and even spawned a slew of freshly baked brands. But the mass consumer is not yet feeling the activity of market players. No government subsidies, no total price drop… In general, nothing. With the exception of a temporarily organized program of preferential car loans, which affected only a small part of the cars on the market, and a point reduction in prices for individual models.
Meanwhile, the experts of the audit company B1 are confident that the Russian car market will show a noticeable start in a year and a half. According to forecasts, by 2025 we will sell more than 1,500,000 cars and in a few years sales volumes will exceed 1,700,000 units. First of all, thanks to the unhindered importation into the country of all the necessary components and, in fact, the cars themselves, as well as 60 percent localization of production. All of this will negate the resulting shortfall, albeit flavored with artificial hype, and will also trigger natural reactions in the competitive environment, which will have a positive effect on pricing.
According to the forecasts of the Ministry of Industry and Trade, 960,000 units of four-wheeled vehicles will be sold on the Russian car market by the end of 2023, although independent experts believe that these figures are too exaggerated – at best, about 630,000 vehicles will be sold .
Moreover, at the behest of Vladimir Putin, car manufacturers will have to focus not only on expensive high-margin products, but also on the mass segment, impose competition and “increase” the vehicle fleet. Along with the domestic AvtoVAZ, Chinese manufacturers have already embarked on this path, incentivizing both buyers and sellers to take action. And this, in particular, should drive the country’s automotive sector to its 2021 indicators over the next five years, according to auditors’ estimates, when just over 1,600,000 cars were sold. Unless, of course, finding a balance between supply and demand is not hindered by fluctuations in exchange rates, on which all business processes directly depend, and the financial difficulties of the United States. And they probably get in the way. And all this fall. Amen.
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.