Automakers have frozen prices for new cars at the end of 2023 and plan to raise them early next year. General director of the Avtodom dealer holding Andrei Olkhovsky told socialbites.ca about this.
“Following the increase in the interest rate to 15 percent and the strengthening of the national currency, buyers’ expectation of lower prices prevailed. However, there will not be a huge decrease in retail prices, there has been no such practice in the Russian automobile market in recent years. We expect car prices of almost all brands to increase starting from the beginning of 2024. Most of the producers want to raise prices this year, but they do not want to be alone with the increasing prices. “As a result, everyone is waiting until the new year to balance the exchange rate and value,” he said.
The source noted that the secondary market is tied to the primary market, when new cars become more expensive, the prices of used cars automatically increase. This especially affects cars that are 1-3 years old and have good configuration. Models with easy-to-find spare parts are extremely popular. Today, there is a stable demand for them, the head of Avtodom is confident that such cars will be the first to increase in price.
Olkhovsky estimates that the new car market will grow by 20% in 2024, reaching 1.3-1.4 million cars. Market growth will mainly be driven by increasing sales of Chinese brands. This year, Russia became the largest importer of cars produced in China, and its share of Russian imports increased from 10% to 92% in 2021. The source stated that if China’s tendency to increase its imports continues, there may be excess supply and competition between them next year.
Previously in Russia Sold The last Volkswagen Taos to be assembled in Russia.