There will be no stability or decline in car prices in Russia in 2024. The increase in prices will be determined by inflationary processes in the economy and the government’s measures to influence the automobile industry and the automobile market in terms of promotion, said Viktor Pushkarev, Deputy Head of Autostat Agency Analytics Department.
According to Pushkarev, it is unlikely that automakers will tightly control prices at dealerships. He is confident that companies will continue to cover all production and logistics costs to achieve the maximum possible profit.
“For a rough assessment of price dynamics, you can use the dependence of the weighted average price of a car on the official annual inflation rate. For example, while inflation will be 12 percent and price increase will be 29 percent in 2022, these figures are expected to be 7.5 percent and 21 percent, respectively, in 2023. “And if Russia’s 2024 budget shows a minimum inflation forecast of 4.5 percent, then the price increase can be no less than 10-12 percent,” he said.
Alexander Shaprinsky, development director of the Pragmatika dealership network, said that to stabilize car prices, a stable ruble exchange rate, a stable and affordable lending rate of at least a quarter, as well as a reasonable recycling fee are needed.
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