Auto dealers and private sellers shipping cars from abroad raised prices by about 10 percent, a move reported by socialbites.ca after speaking with several market participants. The participants pointed to the sharp volatility of the ruble in March and April as the primary driver behind higher car costs.
“The exchange rate swing against the ruble directly shapes price trends. When it comes to parallel imports, prices adjust instantly. Over the last two weeks, prices have climbed roughly 10 percent”, said Renat Tyukteev, head of retail sales at the Avilon automobile group, in an interview with socialbites.ca.
A similar view on current price levels came from Dmitry Rogov, founder of RogovMobil, a company focused on delivering vehicles from South Korea, Japan, Europe and the United States.
“Prices for cars imported from abroad rose in step with the ruble depreciation. Vehicles already in Russia are also affected because selling them at lower prices would prevent obtaining new stock. The dollar surged by about 10 percent, and prices followed suit by a comparable amount”, Rogov explained to socialbites.ca.
Since the start of the previous month, the ruble has weakened by nearly 10 percent against the U.S. dollar. The Central Bank of Russia reports show the exchange rate around 74.9 rubles per dollar on March 1 and about 82.2 rubles per dollar on April 11, with a 5 ruble rise in April alone.
Earlier, socialbites.ca noted that the ruble’s decline prompted Chinese auto manufacturers to raise prices within the Russian Federation, including brands such as Chery and Chang’an. As a consequence, several manufacturers are expected to adjust their marketing strategies in Russia, with Geely also anticipated to align its approach accordingly.