In Russia, the share of new small cars in the domestic market collapsed to a minuscule 0.01 percent. Analysts from Izvestia and Avto.ru Business note that demand for compact new vehicles peaked in 2022, but by February 2024 the number of such models had fallen by 89 percent and the overall selection declined by 58.5 percent. The market shift reflects broader disruptions in supply and changing consumer preferences as the country navigates a volatile automotive environment.
As parallel imports developed, dealership interest in small cars rose. Yet prices, already elevated, surged further, topping 1.6 million rubles by mid-2022 and averaging about 2.33 million rubles by February of this year. This pricing reality makes small cars less competitive against higher-value B-class models, according to Daniil Shkurygin, the business development director at Avto.ru. The price pressure helps explain why sales did not keep pace with supply growth, even with renewed availability through gray-market channels, and underscores the challenge of attracting buyers to compact imports in a market shaped by high tariffs, financing considerations, and consumer risk perceptions.
The decline in market share is tied to Western manufacturers withdrawing from the Russian market. At the same time, Chinese automakers did not present readily accessible small-capacity options for Russia, leaving a gap in the lineup that was not easily filled by regional suppliers. This absence of competitive, affordable small cars contributed to a broader shift in consumer choice toward larger, more versatile vehicles and away from city-friendly compact models that once dominated the segment.
In February the most advertised new small cars were the Kia Picanto at 2.27 million rubles, the Toyota Raize at 2.65 million rubles, and the Kia Stonic at 1.68 million rubles. Meanwhile, the secondary market saw a notable rise in the share of small cars, increasing nearly threefold to about 2.8 percent of all vehicles on the road. Familiar names like the Daewoo Matiz, Toyota Vitz, and Toyota Passo emerged as popular options in the used-car segment, each priced around 1.09 million rubles when new, and more affordable for couriers at roughly 259 thousand rubles in today’s listings. The dynamics of new versus used inventory highlight how buyers weigh initial purchase cost against ongoing maintenance and resale value in an environment marked by fluctuating exchange rates and evolving import policies.
Analysts have suggested that in the coming three to four years, sales of new manual transmission-equipped cars in Russia could retreat to a low baseline. In 2022, only about a third of new cars from Europe arrived with manual gear boxes, while the domestic market currently features an estimated 30 to 35 percent share of manuals in new vehicles. This trend aligns with a broader shift toward automatic transmissions in many markets, raising questions about the long-term demand for affordable manual cars in Russia and how manufacturers might adapt their offerings to evolving consumer preferences, regulatory requirements, and competition from other body configurations and powertrains.
Recent assessments by insurers identified a taxi vehicle brand as having a higher incidence of accidents within the Russian fleet, underscoring safety considerations that influence fleet decisions and consumer perceptions about reliability and total ownership costs in a market still reconfiguring after years of rapid change.