Russian car market: maybe everything is not so tragic
- April 10, 2023
- 0
After listing the results of sales for the three months of 2023, it became clear that there was no reason to dance with an excess of feelings, and
After listing the results of sales for the three months of 2023, it became clear that there was no reason to dance with an excess of feelings, and no. However, you can still find some positive aspects with strong desire. The AvtoVzglyad portal tried to simulate a, if not bright, then not quite boring future for the Russian car market.
Of all the sectors of the economy that have been hit hard by unfairly imposed sanctions, the auto industry seems to have suffered the most. Of course, the blame for this lies not only with shy foreign “partners”, but also with domestic leaders of all ranks – from factory directors to ministers.
It is the irresponsible attitude of Russian officials and production workers that has left the Russian auto industry in an embarrassingly disastrous state. Adherence to the slogan “everywhere to work, just not to work” became the reason that our automotive industry, on the one hand, did not acquire advanced technologies, and on the other hand, lost its own developments in this important field, relying entirely on on good foreign uncles.
The depth of the technological decline can only be gauged by the fact that our industry has been unable to produce ABS, ESP or airbags. But frankly, these are not the most complex systems. We should therefore only blame ourselves for the transition of the currently sold cars to a lower quality level.
There was no complete collapse.
Nevertheless, thanks to the efforts of Russian car factories, which increase the production of merciless cars by half, as well as the Chinese comrades, who, fortunately for us, learned in time how to make quite decent cars, a complete collapse was avoided . With great tension, our car market is still emerging from the hole it fell into a year ago, although the pace of recovery leaves much to be desired.
However, there is still a weak cause for optimism. In the last week of March, according to the AUTOSTAT agency, 18,900 new cars and 1,890 light commercial vehicles were registered. If production and import levels remain at this level until the end of the year, our motorists will buy approximately 1 million new cars as a result.
With a high degree of probability, we can assume that the final number will be even higher, as the market has been on a stable upward trend since the summer and since December this growth has accelerated sharply. And by and large, there are no reasons for the collapse unless new foreign policy upheavals emerge.
It won’t be enough
But, of course, a million will not be enough. According to experts, for the normal operation of the automotive industry in Russia, it is necessary to sell more than 1.6 million cars per year. And in 2023 this bar will not be taken in any case. But a factor that is not taken into account, although there is little hope for it, can help to get closer to her. As you might guess, we are talking about Korean manufacturers, who are now in a very precarious position. They don’t want to die leaving Russia at the mercy of the Chinese, but at the same time the anger of the Americans terrifies them in a childish way.
So far, the “Koreans” consistently occupy 9-10% of the market. For them, this is an insignificant percentage, so before the imposition of sanctions – that is, in February 2022 – they accounted for 23% of all car sales. Since Hyundai and Kia have not yet sold or divested their plants, they retain their full potential.
In other words, through imports and local production, Koreans can offer Russian motorists up to 370,000 cars per year. The question is whether they have the courage to resist US pressure, or whether they are cunning enough to allow the Americans to resume normal relations with Russia.
Photo by globallookpress.com
Photo by globallookpress.com
Of all the sectors of the economy that have been hit hard by unfairly imposed sanctions, the auto industry seems to have suffered the most. Of course, the blame for this lies not only with shy foreign “partners”, but also with domestic leaders of all ranks – from factory directors to ministers.
It is the irresponsible attitude of Russian officials and production workers that has left the Russian auto industry in an embarrassingly disastrous state. Adherence to the slogan “everywhere to work, just not to work” became the reason that our automotive industry, on the one hand, did not acquire advanced technologies, and on the other hand, lost its own developments in this important field, relying entirely on on good foreign uncles.
The depth of the technological decline can only be gauged by the fact that our industry has been unable to produce ABS, ESP or airbags. But frankly, these are not the most complex systems. We should therefore only blame ourselves for the transition of the currently sold cars to a lower quality level.
There was no complete collapse.
Nevertheless, thanks to the efforts of Russian car factories, which increase the production of merciless cars by half, as well as the Chinese comrades, who, fortunately for us, learned in time how to make quite decent cars, a complete collapse was avoided . With great tension, our car market is still emerging from the hole it fell into a year ago, although the pace of recovery leaves much to be desired.
However, there is still a weak cause for optimism. In the last week of March, according to the AUTOSTAT agency, 18,900 new cars and 1,890 light commercial vehicles were registered. If production and import levels remain at this level until the end of the year, our motorists will buy approximately 1 million new cars as a result.
With a high degree of probability, we can assume that the final number will be even higher, as the market has been on a stable upward trend since the summer and since December this growth has accelerated sharply. And by and large, there are no reasons for the collapse unless new foreign policy upheavals emerge.
It won’t be enough
But, of course, a million will not be enough. According to experts, for the normal operation of the automotive industry in Russia, it is necessary to sell more than 1.6 million cars per year. And in 2023 this bar will not be taken in any case. But a factor that is not taken into account, although there is little hope for it, can help to get closer to her. As you might guess, we are talking about Korean manufacturers, who are now in a very precarious position. They don’t want to die leaving Russia at the mercy of the Chinese, but at the same time the anger of the Americans terrifies them in a childish way.
So far, the “Koreans” consistently occupy 9-10% of the market. For them, this is an insignificant percentage, so before the imposition of sanctions – that is, in February 2022 – they accounted for 23% of all car sales. Since Hyundai and Kia have not yet sold or divested their plants, they retain their full potential.
In other words, through imports and local production, Koreans can offer Russian motorists up to 370,000 cars per year. The question is whether they have the courage to resist US pressure, or whether they are cunning enough to allow the Americans to resume normal relations with Russia.
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.
