Market Movements in the Russian Auto Sector in March
The Russian automobile market saw a rise in what observers label as emotional purchases in March. Reports from Kommersant indicate that buyers rushed to secure vehicles amid fears of price increases tied to emerging import rules with EAEU members, potential exchange rate fluctuations after the presidential election, and the winding down of discount programs. Some buyers even financed purchases at rates as high as 20 percent per year as they sought to lock in prices before further changes took effect.
Speaking on the outlook, Nikolai Ivanov, director of the new car sales division at Rolf, suggested that dealers expect sales to hold steady at least into April. The rationale rests on the persistence of older, lower price points still on the market, which have continued to attract buyers. He also noted that discount policies are unlikely to shift significantly in the near term.
Evgeniy Zhitnukhin, head of the dealership department at Fresh Car Market, confirmed that discounts would likely persist due to inventory from 2023 still in warehouses. This stock supports continued price reductions for some models, even as other market forces push prices higher in the medium term.
Andrei Olkhovsky, general director of Avtodom, warned that prices could climb by 20 to 25 percent as changes to import rules for foreign cars from EAEU countries take effect. The market is watching closely as the regulatory environment shifts and the tax and fee structure evolves in response to new guidelines.
A government decree came into force on April 1, altering how the amount payable for importing cars from EAEU countries is calculated. Taxes and duties that were previously masked under the customs value of these imports will be factored into the recycling fee. Citizens and companies importing vehicles with Russia as the customs clearance point will see no change in the process. The modification reflects a broader move to integrate environmental funding with import costs, while preserving the existing procedures for those importing vehicles directly through Russia.
Additionally, the customs clearance procedure for electric motor vehicles imported from EAEU member states must now be completed within the Russian Federation, aligning with national regulatory requirements for green vehicle imports.
Earlier discussions on this topic highlighted potential impacts for foreign car imports after April 1, with analyses outlining how these changes might ripple through pricing, availability, and consumer financing options. Observers emphasized the importance of monitoring how manufacturers and dealers adjust their strategies in response to the evolving policy landscape.