In Russia, a spike in the price of used cars

In Russia, used cars aged three to five years after more expensive new, and for January—June prices have risen by 3-3. 5 percent, calculated at “the”.

a Car of this age — the most popular proposals, which are seen as an alternative to new cars, especially in a crisis. In April—may, the price of used cars dipped amid quarantine, but now they recovered, and market participants expect further growth in the coming months, reports the newspaper “Kommersant”.

In the first half of the year prices on cars aged three and five years grew on average by 3-3. 5% to 1.2 million rubles, and 973 thousand rubles, respectively.

Recall that earlier this week in an interview with “Vedomosti”, the head of Minpromtorg Denis Manturov has predicted that vehicle production in Russia by the end of the current year will be reduced at least by 15%. “I think the decline is relatively 2019 will be at least 15%. I want this figure to navigate,” said the Minister.

however, he noted that on the main European automotive markets, the reduction peaks in March—April this year amounted to 70-80%. “Russia is not an exception, in April the fall was below 80%, in may — 50%. It is obvious that in the present circumstances the purchase of a car for the citizens of our country and business is not the first priority,” the Minister said.

Note that the sales of new passenger and light commercial (LCV) cars in Russia fell in may 2020 51.8% yoy (after the collapse of the 72,4% in April and 4% growth in March) to 63,033 thousand units. For the first 5 months of the current year in Russia were sold 478,135 thousand cars and LCV (minus 25.7% in annual terms), it follows from the estimates of the Committee automakers Association of European businesses.

Commenting on these results, Chairman of automobile manufacturers Committee AEB Thomas Starzel abouttotal that “the showrooms of Moscow, St. Petersburg and most of the regional dealers were closed for the entire month.” “Technical centers were able to resume work, and, accordingly, the flow of customers began to grow. We expect that in June amid the easing of restrictions in most parts of the country the situation is slightly improved, which will positively affect the sustainability of the dealer network. Implementation of the first package of measures of state support will contribute to the gradual recovery of the market in the second half of the year”, — the expert believes.

At the end of April experts of the consulting company PwC did not rule out that the sales of new passenger cars in Russia by the end of this year may have fallen by 30% over the previous year to 1,142 million cars. In this scenario without taking into account stress factors for 2020 implies a decline of only 3.7% to 1.57 million vehicles.

we also Add that the production of passenger cars in Russia, according to Rosstat, decreased in January—may 2020 37.2% yoy to 406 thousand units. With may production of passenger cars fell by 54.4% in annual terms, but surged by 70.3% of the previous month.

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