Jan Haytseer, the vice president of the National Automobile Union, attributes the decline in new car sales in Russia primarily to the spike in vehicle prices, noting that many Russians were unprepared for the higher costs. He expects the market to keep weakening as prices stay elevated and purchasing power remains constrained.
The sticker price is not the only hurdle. Consumers are signaling resistance to paying more for domestically produced models, as well as for Chinese cars, which now carry price tags about 50 percent higher than before. Even vehicles entering the market through parallel imports fail to present a compelling value, limiting the pool of buyers willing to open their wallets. The expert described the demand as relatively narrow in scope, even as those who do buy continue to weigh the long-term costs of ownership.
Another important dynamic, Haytseer pointed out, is consumer confidence about future income. A large share of car purchases has been financed through loans, and the portion of buyers relying on credit has diminished as expectations for tomorrow’s earnings become uncertain.
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