The practice of adding optional equipment to new cars at the point of sale is shifting in Russia, with major dealership groups reporting a decline in aggressive monetization of extras. Representatives from Avilon and Avtodom, two of the country’s largest dealer holdings, shared this evolution with socialbites.ca, noting a strategic move away from pressuring buyers with add-ons at the time of purchase.
Roman Timashov, who serves as Director of Services for Avtodom Altufievo, explained that in the past some dealerships pursued high traffic by presenting a deceptively low base price and then monetizing through services and add-ons such as extra equipment, extended warranties, insurance products, and trading services. He described this approach as a tactic that worked during a period when inventories were abundant, stock was plentiful, and turnover and market share were prioritized over pricing transparency.
Timashov emphasized that market conditions have changed. Currently, there are noticeably fewer cars in stock, and customer activity has slowed. As a result, the incentive to upsell additional services or to emphasize perceived shortcomings has diminished, reflecting a broader recalibration within the industry.
According to the Avtodom executive, the rising cost of spare parts and the premium attached to optional services can drive up the overall price of a vehicle, potentially deterring buyers and reducing showroom traffic. He also noted that cars imported through parallel channels often arrive with more equipment installed as a selling point, which contributes to price dispersion and buyer choice signals that differ from standard configurations.
Renat Tyukteev, Retail Director at the Avilon Automobile Group, corroborated the trend toward a more restrained approach to selling add-ons. He pointed out that those who push service impositions to the extreme are typically operating outside the official channel, sometimes described as gray dealers. He mentioned that only a small share, around five percent, remains within the official network as a response to occasional cases reported in open sources, which brands have worked to curb quickly.
Industry reporting suggests that the peak period for heavy emphasis on additional equipment from gray dealers has passed, with pricing stabilizing as market awareness grows. At the same time, some smaller dealerships continue to rely on financing arrangements that carry exceptionally high costs, appealing to buyers who may lack full financial literacy or who are enticed by low sticker prices. For consumers, this means a clear tradeoff between upfront price and the long-term cost of ownership, a choice that requires careful evaluation of loan terms and total price of the vehicle.
Both executives signaled a broader need for safeguards within the sector. They argued for protective mechanisms that would help ensure fair pricing practices, clearer disclosure of optional charges, and improved customer understanding of what is included in a given offer. Such measures could support healthier competition and improve consumer confidence in a market that has faced volatility and scrutiny in recent years.
Historical context shows that the Russian market experienced a substantial contraction in new-car sales during January 2023, with a year-over-year drop of 63.1 percent. Amid this decline, eight Chinese-made models appeared among the ten most popular vehicles, highlighting shifts in consumer preferences and the global sourcing of automobiles during a period of economic adjustment. The current narrative suggests a cautious, if evolving, landscape where dealers balance the desire to attract buyers with the imperative to maintain transparent and fair pricing practices.