In April this year, Russian banks issued a substantial volume of vehicle loans, totaling 77,000 contracts worth 109.5 billion rubles. This marked a record for car financing in the last decade and exceeded the pre-crisis peak of 100.1 billion rubles recorded in April 2021. The figures come from a report by RBC that referenced data from the analytics firm Frank RG, illustrating a clear expansion in auto lending activity during the period.
Frank RG notes that April 2023 saw a notable rise in auto lending both in value and in the number of loans issued. Compared with March, loan volume climbed by 14 percent and the number of loans by 9 percent. The upward trend continued for a second consecutive month, with March data indicating even stronger growth versus February: auto loan volumes increased by 21 percent and the number of loans by 14 percent. Driving this momentum was an increase in the average loan size, which reached 1.42 million rubles in April, topping the February record of 1.4 million rubles set in the previous year.
The surge in auto lending occurred against a backdrop of broader supply chain challenges in Russia’s automotive sector. A number of foreign automakers paused deliveries to Russia, including prominent brands such as Audi, BMW, and Chery, among others. The interruption in shipments contributed to a tighter car market, gradually restricting supply and influencing lending dynamics as banks weighed the risk and opportunity of financing purchases in a constrained environment. The market response reflected both consumer demand for vehicles and lenders’ assessments of affordability amid evolving conditions for imports and production.
Industry observers point to several factors shaping the bank lending landscape. In 2023, financial institutions anticipated shifts in the supply of cars via Asia, with Asia-origin vehicles expected to gradually replenish inventories and support loan origination. Analysts also regarded parallel imports as a potential driver of loan growth, offering alternative channels to bring vehicles into the country and sustain consumer financing activity. These elements collectively influenced lenders’ expectations and strategies as the year progressed.
The Central Bank of Russia, in its assessments for 2022, highlighted that a portion of households, around four percent, carried car loan obligations. This statistic underscored the role of auto financing within household debt profiles and indicated the ongoing relationship between consumer credit and vehicle ownership in the Russian economy. As 2023 unfolded, banks monitored a mix of supply constraints, policy signals, and import dynamics to gauge the trajectory of auto lending and vehicle sales.
Taken together, the data painted a picture of a car loan market that had shifted from a period of contraction to a phase of renewed activity. While the reduction in new car deliveries during the early part of the year weighed on overall sales, the expansion in lending and the rising average loan size suggested that borrowers remained engaged with vehicle financing and that lenders were actively managing credit exposure amid changing supply conditions. The interaction between demand, availability of vehicles, and the evolving regulatory and market environment shaped the rhythm of auto lending through the spring and into the subsequent months, with Frank RG’s analysis providing a lens into how these forces manifested in lending statistics.
Notes: Figures cited reflect the ongoing observations by Frank RG, based on data collected from the banking sector and market indicators. The April 2023 metrics illustrate a broader trend of growing usage of auto loans alongside fluctuating vehicle availability and imports considerations that continued to influence consumer financing behavior in Russia.