Cars have risen in price and disappeared – Gazeta Kommersant № 57 (7258) from 04.04.2022

New cars in Russia rose by an average of 40% in March amid devaluation and suspension of supplies. The strongest increase – up to 60% – concerned premium cars, whose supplies to Russia are limited not only due to logistics problems, but also sanctions from the United States, the EU and Japan. So far, dealer warehouses are not empty, but due to high prices and falling real incomes, demand has already fallen – the passability of car dealerships is minimal. Some dealers report a 60% drop in sales in March and expect a deterioration.

Prices for new cars rose by an average of 40% in March, according to a Kommersant survey of dealers and Avtostat data. In the latter, it was separately noted that the prices of 26 car companies officially represented on the Russian market, which did not hide the price lists from the sites, went up by 35-45%. Kommersant’s example of the fact that importers and distributors are removing retail recommended prices from websites is due to the instability of the exchange rate and the need to frequently review price lists. In March, Lada also rose in price twice – AvtoVAZ, according to Avtostat, increased prices by 11-47% depending on the model and equipment. The cost of the most popular foreign car Kia grew by 24-39%.

The most active, by an average of 50-60%, were cars in the upper price segment, says Renat Tyukteev, director of Avilon Mercedes-Benz.

But the availability of premium cars is also much lower, as the United States, the European Union and Japan have banned new supplies: “This is where the main shortage has formed, which will increase day by day, and we already feel it.” Andrei Olkhovsky, General Director of Avtodom Group (specializing in premium brands), notes that there are cars of all brands represented: “On average, from 50 pieces of each brand, excluding the importer’s warehouse reserve. The most affordable is Mercedes-Benz, with the fewest Jaguars. ” However, Avilon, which has maintained its leadership in sales of Mercedes-Benz in recent years, has a stock of, for example, Mercedes-Maybach only in the volume, which usually sells for a month, about 25 cars.

Everything that dealers received from manufacturers a week ago is now the main inventory for months of work, and this directly affected the cost, says Renat Tyukteev. According to him, dealers’ warehouse stocks will be enough for two or five months:

“There are more stocks for cars in the middle price segment, but not only shipments have been stopped, but also local production. The shortage of cars is growing. “

Sales in March fell by about 60%, says Andrei Olkhovsky: “In April, the downward trend will continue, and if the key rate of the Central Bank does not change, the decline could reach 70%. Traffic in dealerships is minimal. ” Regional dealers are even less optimistic. “The market is frozen, there is no demand in all price segments,” said Vladimir Sipko, a beneficiary of Premier Holding (Samara and Togliatti). There are stocks in the warehouses, but they will be enough for two or three months. Everyone is waiting. ” Vladislav Rydaev, General Director of Pragmatics Group (official dealer of Kia and Lada, car centers in the northwest of the Russian Federation), says that stocks of new cars are now at 25% of the required monthly balance, but the dealer compensates by buying cars with mileage.

“In the near future, the secondary market will grow and generate revenue for the author, especially given that by the end of the month their value has decreased slightly, by an average of 5-10%, but in monetary terms it is hundreds of thousands of rubles,” said CEO Fresh Auto Denis Migal. But second-hand sales are also falling due to declining real incomes, he added.

“The market for cars with mileage is clearly overheated, it was raised by car dealers themselves,” agrees Andrei Olkhovsky.

He expects that in the next three months, sales of used cars will decline slightly. The ruble’s exchange rate has stabilized, and current prices for cars with mileage are clearly inflated, explains Mr. Olkhovsky, while the cost of loans is too high to buy a car could a wider range of people. “At some point, prices became cosmic, and the development of the situation – incomprehensible to customers, including due to the strengthening of the official ruble exchange rate,” – adds Sergei Udalov of “Autostat”. He believes that demand alone will not recover: either a decline in geopolitical tensions or actions from dealers are needed.

Olga Nikitina; Sabrina Samedova, Samara; Vyacheslav Kalashnikov, St. Petersburg

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