Pango Cars has rolled out a digital auction platform in the Russian market to facilitate the sale of used vehicles, according to the company’s press service. The move introduces an online auction system where dealers can swap both their own pre-owned cars and vehicles offered by private sellers who want to list them for auction.
The system creates a marketplace where regional buyers and sellers can connect, enabling a Krasnodar dealer to acquire a Moscow-priced vehicle at a more competitive rate, thanks to regional price dynamics. In another scenario, a model that is less popular in Kazan could be sourced and shipped to Chelyabinsk, where demand is steadier. This geographic flexibility helps balance supply with fluctuating demand across major cities. (Source: press service)
Industry observers note that inventory levels of new passenger cars in major Russian dealer warehouses reached a high watermark in January 2024, a trend not seen since early 2022. For example, the Rolf company reported roughly 4.5 thousand cars in its warehouse, compared with about 4.2 thousand in 2022 and 4.3 thousand in 2023. Analysts attribute this overstock to Chinese automakers pursuing aggressive stocking strategies toward the end of 2023, which left inventories representing roughly two months of sales. (Source: industry data)
Forecasts suggest it will take several months for dealers to work down these excess stocks. In the interim, discounting is anticipated as sellers attempt to attract buyers and reduce warehousing pressure. Market chatter indicates that retailers have already started trimming prices on vehicles valued around 300 thousand rubles to stimulate turnover and clear space. (Source: market reports)
Overall, the new digital auction initiative aims to improve liquidity in the used-car segment by shortening the time from listing to sale and by creating more price transparency across regions. The strategy appears designed to optimize dealer inventories while offering private sellers a straightforward channel to reach a wider pool of potential buyers. (Source: corporate communications)