The ownership group behind Avtodom and AvtoSpetsTsentr has decided to halt supplying cars for sale to Russia via parallel imports. The move stems from a combination of tighter supply, weaker demand for such vehicles, and higher import costs from Europe, according to the two companies’ shared press service.
Looking ahead, deliveries are expected to be limited due to ongoing supply constraints and rising costs associated with parallel imports of premium European cars. The group plans to shift its focus toward expanding the official supply of Chinese electric vehicles and hybrid models. The communications director for the group stated that it remains committed to continuing spare parts support and honoring longstanding obligations to customers of European brands. This ensures that service and parts availability will persist for some time to come. (Source: Gazeta, communications direction quote)
The holdings argue that premium European brands still hold a unique position in the market. To rekindle consumer interest, dealers will organize a broad liquidation of warehouses containing cars previously imported via parallel channels. Among the models most actively imported through parallel schemes in 2023 were Audi, BMW, Mercedes, and Porsche variants. (Source: internal market commentary)
In 2023, recycling rates in Russia showed notable variation by engine size, a trend noted by observers. A government decision approved on October 29 called for a duty adjustment: if an individual resells a vehicle within a year, they must pay the corresponding recycling tax rate for legal entities, a move reported by Kommersant. This policy adds another layer of cost and planning for buyers and sellers in the market. (Source: Kommersant report)
There has also been speculation about how manufacturers like AvtoVAZ might respond to evolving market conditions in 2024, including potential price adjustments as part of broader market recalibrations. Analysts have suggested that price shifts could reflect changes in supply dynamics, currency movements, and the evolving regulatory landscape affecting imports and domestic production. (Market analysis notes)