Shifts in the Russian car market: price rises, stock shortages, and the rise of Chinese models

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Recent reporting from Izvestia highlights a challenging situation in the Russian car market: elevated prices and shortages have left dealers with few European and South Korean models that had previously exited the country. The result is a tighter supply and higher costs for the remaining inventories, a reality noted by industry observers and market analysts alike [Izvestia].

Among the still-available options, models such as the Kia Cerato and Seltos, the Volkswagen Taos and Tiguan, and the Skoda Kodiaq and Karoq appear more expensive than similar offerings from Chinese manufacturers. Ilya Petrov, who oversees retail sales at Avilon, explains that these price gaps have become apparent in recent months as dealers adjust to the altered import landscape and higher logistics costs [Izvestia].

Price moves have been dramatic. For example, the Kia Cerato Luxe configuration has moved up to 2.3 million rubles from about 1.6 million rubles in the past. The Kia Seltos follows a similar trend, rising to 2.3 million rubles after previously sitting around 1.8 million at the start of 2022. These shifts reflect a combination of import restrictions, currency dynamics, and the premium placed on remaining stock that can be delivered with longer lead times [Izvestia].

Independent automotive expert Sergei Burgazliev notes that the market has seen a rapid depletion of comparatively affordable models such as the Hyundai Solaris or the Volkswagen Polo. In contrast, the more expensive models linger unsold. He argues that paying 3-4 million rubles for a car often delivers diminished warranty coverage and limited spare parts support under current conditions, making the purchase less attractive for many buyers [Izvestia].

Another perspective from Burgazliev is that buyers can find value in newer Chinese vehicles, which come with full factory warranties and readily available spare parts, often at a price around 2 million rubles. This creates a practical incentive for customers who want reliability and ongoing service without the premium associated with European and South Korean brands in the current market environment [Izvestia].

Meanwhile, developments in the wider global market are shaping manufacturing and assembly. Reports indicate that Aurus cars have begun to be produced in a dedicated facility in Abu Dhabi, following assembly initiatives in the United Arab Emirates. This expansion points to a diversification of production sources and potential shifts in import strategies for premium brands [Izvestia].

Additionally, it has been noted that particular models identified for discontinuation were set to halt supply to Russia after August 1, reflecting ongoing policy and logistical decisions that influence consumer choice and dealer pricing. Market participants continue to monitor how these changes will affect long-term inventory and warranty commitments [Izvestia].

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