Rising Vehicle Prices in Russia Tied to Recycling Fees and Currency Shifts
Since August 1, price hikes for several car models in Russia have exceeded 600 thousand rubles, driven by changes in recycling fee rates and a weakened ruble. This assessment comes from Renat Tyukteev, Deputy General Manager for Sales of New Avilon Cars, as reported by Autonews.ru. Tyukteev notes that the July trend was more restrained, with prices rising on average by about 70 thousand rubles. However, beginning August 1, the price increases broadened significantly, with many brands seeing jumps from 120 thousand to 600 thousand rubles or more. He adds that the upward movement persists, with recent price lifts of 50 to 80 thousand rubles for various brands, a consequence of shifting usage rates and fluctuations in the foreign exchange market.
The market watch indicates that prices for cars sourced through parallel imports are likely to rise rapidly in the near term. In contrast, Tyukteev suggests that price dynamics for Chinese automobiles should remain more moderate. He also cautions that consumer loan costs are likely to rise after the Bank of Russia raised the key rate to 12 percent.
Data from AUTOSTAT show that from August 1 to 15, 13 automobile companies promptly raised car prices in Russia in response to the new recycling rates entering into force. Analysts point out that such a broad, rapid price increase has not been seen since May 2022, underscoring the intensity of price adjustments across the market.
The Russian car market has historically ranked among Europe’s top five in terms of sales, a position that continues to shape how price movements ripple through the sector and influence consumer decisions.