By mid-October, there were 3,100 dealers of different brands in Russia, including those who left the Russian market. At the same time, the supply of new cars to Russia is difficult and the stocks of dealer networks are melting before our eyes, although sellers are trying to stretch them as long as possible.
Eventually there will be no more cars. So dealers will have to close after they sell the last cars? Not at all, Avtostat discovered. They have prospects of staying in the market and making a profit.
Some of the cars will be delivered to showrooms under the parallel import scheme, said Alexey Starikov, deputy general manager for new car sales at Avilon AG. This is beneficial when reselling mid-price and premium cars – there’s no point in importing budget cars like these.
Alexey Starikov also pointed out the development of dealer networks of Chinese distributors.
“The redundancy of Chinese brand dealers is already a fact that needs to be addressed. An excessive desire to fulfill the plan to open dealers among the Chinese has led to some bias in this matter. This has significantly changed dealers’ financial model and significantly reduced their margins,” said Andrey Olkhovsky, Managing Director of Avtodom Group of Companies.
But Chinese brands have huge potential in Russia, said Sergey Vainer, director of development at Avtopole. Buyers will replace them with cars of European, American, Korean and Japanese production that will disappear from sale. That is, soon sales of Chinese cars may reach hundreds of thousands.
In addition, Iranian cars will be imported into Russia in the near future, recalls Denis Migal, CEO of the Fresh Auto car market. If the pricing is right, these cars can compete with the Ladas and occupy a budget niche. Over time, joint production of Iranian cars may also appear.
Source: Z R
