Driving schools in Russia started closing one after the other, the industry said. The company has barely recovered from the pandemic and may not be able to withstand the rise in costs resulting from the rise in the price of cars and spare parts, while the flow of customers is rapidly decreasing. Ten years ago, up to 14 thousand driving schools operated in Russia, now there are only 6-7 thousand. Across the country, 3-5 million people came to learn to drive in those years, and now half of that number.
The coronavirus epidemic and the economic difficulties associated with sanctions have caused companies to lose profitability, company representatives told Izvestia.
In the coming months, driving school owners will have to choose between closing or raising tuition prices, they say.
Until 2022, people’s interest in learning in driving schools was still there, but this spring the number of future drivers has noticeably decreased – by about 50% compared to pre-Covid times. The experts see the reasons in the fact that the purchasing power of the population has fallen, cars and spare parts have risen in price, become less accessible. If there is no way to buy a car, why rights, people argue.
In addition, the rapid increase in the price of cars and parts has also affected driving schools. Cars wear out and driving schools have no money for new ones. If cheap Chinese cars don’t hit the market, 80% of schools will close.
Prices are still going up
Only those organizations that own the property and have government contracts for driver training will survive. But the prices for services will still rise even in those schools that will remain – at least by 7-10 thousand rubles. Now the cost of education reaches 40 thousand rubles. And the course for 50 thousand rubles. Few people will be able to afford it, people now don’t even want to study for 20 thousand, they complain in driving schools.
There is also a more optimistic view – the demand for driving schools will grow, says Vadim Melnikov, general director of the expertise center “Movement without danger”. Prices will still have to be increased, but not by multiples, and there will be a demand for rights as long as there are cars. As for the fleet replenishment issues, these can be solved both by import substitution and by strengthening the presence of Asian manufacturers in the market.