New cars in Russia: we expect sales growth of 40% in 2023

The ROAD Convention of Russian Automobile Dealers has opened at the Expocentre on Krasnopresnenskaya Embankment.

This year, for the first time, the event is visited by a delegation of representatives of the Chinese automotive business. Within the framework of the Convention, opportunities are being discussed to expand cooperation between Russian dealers and China.

Obviously, in the current situation, it is Chinese cars that will allow the Russian market to reach steady growth by the end of 2023.

According to Alexei Podshchekoldin, the head of the ROAD, the financial volume of the Russian car market at the end of the year will amount to about 9 trillion rubles against 7 trillion rubles a year earlier, which is equivalent to a 38% growth compared to 2022. “Our forecast is that 950,000 new cars will be sold this year if the ruble does not jump. Last year, about 687,000 were sold,” said Mr. Podshchekoldin. “We need cars that cost up to 150,000 yuan in China, or up to 2 million rubles.”

In addition, according to the ROAD, it would be worth reducing import duties to Russia: in this way, it would be possible to meet the demand for new cars in the segment up to one and a half million rubles and at the same time increase tax collections due to the volume of imported cars.

With all optimism, it should be noted that in 2022, according to the Association of European Businesses (AEB), it was implemented on 58.8% fewer new cars compared to 2021, so the Russian market is still far from full recovery.