In the first quarter of 2024, large dealers in Russia may reduce prices for cars produced in 2023 and 2022, because as of the end of last year there was a large stock of unsold cars on the market. This is about RuNews24 said Expert of the drom.ru portal Sergey Arbuzov.
He explained that this would support demand in the market. He said Chinese car brands can reduce prices by receiving direct or indirect compensation from their government, while dealers can sacrifice margin (the difference between price and cost – editor’s note) in exchange for bonuses from the distributor.
“For example, Chery dealers already work according to this scheme. Otherwise, there are no prerequisites for a reduction in recommended retail prices in 2024. Additionally, the average duration of vehicle ownership will increase further in 2024. “Deprived of the opportunity to purchase a new non-Russian car, some buyers are reorienting themselves to the used car market,” Arbuzov added.
Analytical agency “Avtostat” before reportedIt was stated that the Chinese automobile brand Haval sold 111.7 thousand cars in the Russian market in 2023, and this figure is 3.3 times more than in 2022.
Previously, one-third of used cars in Russia to sell with twisted mileage.