Manufacturers that previously supplied cars popular in state fleets in Russian factories halted operations. Consequently, the remaining stock of A-class models and other brands has seen a sharp rise in prices, and public tenders for these vehicles have effectively disappeared from the purchasing landscape.
Typically, officials preferred Toyota and Volkswagen because they met the double constraint of cost and localization: not exceeding 2.5 million rubles and being produced in Russia. In today’s market, models such as Genesis, Haval, Hyundai, and Kia are often considered the practical alternatives for official use.
According to industry observers, Korean brands still represent about 8-9 percent of the Russian market’s global turnover. Japanese manufacturers have attempted to negotiate continued presence in the country. Officials are faced with the reality that the existing fleet must be kept in service. There is a belief that extending or reconditioning the current park could be financially sensible for the budget. Premium-brand buyers have tended to gravitate toward Toyota, Kia, and Hyundai, a point highlighted by Oleg Moseev, a project leader known as Automarketologist.
Nevertheless, officials are likely to find a workaround. A recent development shows that the maximum purchase price can be adjusted through a direct decision by regional or city leadership. This approach has already been applied in the Tyumen region, where the approved price for new vehicles rose to 5.3 million rubles.
- You can learn more about the appetite of state-owned companies when purchasing cars here. This information is presented in old rubles for historical reference.
- Updates on procurement trends can also be read via the driving section on Viber.
Image: Marat Abulkhatin / Photo Service of the State Duma of the Russian Federation / TASS [citation attribution]