Prices for cars in Russia are edging downward as dealer warehouses become temporarily overstocked. This dip is expected to be short, with market insiders forecasting the relief will last no more than a month. The information comes from a report cited by Komsomolskaya Pravda, referencing Renat Tyukteev, the Deputy General Director for New Car Sales at Avilon AG. Tyukteev notes that since January 2024, several automakers have begun increasing payments to dealerships, and these funds are being passed on as discounts to customers.
The manufacturer-supported discounts are described as a temporary measure. Tyukteev explains that the financial backing from producers will endure for roughly one month, after which dealer discounts are likely to retreat to their former levels. In other words, the current price relief is a short-term effect tied to the ongoing dealer support programs.
Historically, the market has seen inventories climb to high levels at the start of each year. In January 2024, the stock of new passenger vehicles held by large dealer groups reached its peak not seen since the early days of 2022. This overstock has been driven in part by actions from Chinese manufacturers seeking to maximize dealer inventories before the year-end, a strategy that has left some showrooms with two months worth of sales in stock.
With an elevated supply situation, it will take several months for dealers to work through the excess inventory. During that period, price discipline will hinge on the ability of sellers to reduce prices or offer meaningful concessions to buyers. The consequence of crowded warehouses is that discounts may become a common feature of car purchases as the market clears the surplus.
Previously, a similar trend emerged when logistic bottlenecks and inventory build-ups forced dealers to offer discounts. In those moments, the price reductions reached levels of around three hundred thousand rubles for certain vehicles, as dealers sought to move inventory that was clogging warehouse space and tying up capital. This pattern illustrates how warehouse dynamics can translate into buyer-friendly price actions for a defined window of time, followed by a normalization of prices once stock levels tighten.