New cars in Russia has risen significantly since the beginning of the year

the prices of new cars in Russia for the first 4 months of this year increased on average by 10%, estimated by analysts of the Agency “AUTOSTAT”.

Experts point out that in January—April the average price of a new passenger car in our country amounted to 1 mln 688 thousand rubles, and that is by 9.7% higher than a year earlier.

“At the same time the average price of cars for the accounting period has reached 1 million 967 thousand rubles, and domestic car 698 thousand rubles”, — says “AUTOSTAT”.

Recall that, according to the Committee automakers Association of European businesses, sales of new cars and light commercial (LCV) cars in Russia has fallen in April 2020 at 72,4% yoy (after rising 4% in March and a decline of 2.2% in February) to 38,922 thousand units. For the first 4 months of current year in Russia were sold 415,102 thousand cars and LCVs (down 19.1% in annual terms).

at the end of March, “the Russian automobile dealers” (ROAD) has written to the Prime Minister of the Russian Federation Mikhail Mishustin letter, which indicated that significant deterioration of the economic situation due to the pandemic coronavirus COVID-19 leads to serious drop in the market and the mass dismissal of staff. ROAD, which unites about 1 thousand 250 dealers (67% of car sales), warned that may suffer as sales of new cars and mileage, and markets for maintenance services and spare parts.

among the desirable support measures are referred to as the exemption from social benefits, the introduction of vacation tax on property and land, and deferral of VAT payment.

in this ROAD is estimated that in the absence of measures to support the industry will lose from 10 billion to 20 billion rubles of working capital, this can be closed up to 30% of dealerships.

In early may, Russian President Vladimir Putin approved a list of instructions for the development of the Russian automotive industry, obliging the government to 22 may make decisions on the allocation of a total of 20.5 billion rubles from the budget to support demand for the products of the automotive industry. In particular, the Cabinet must ensure that “the direction of additional budgetary appropriations from the Federal budget” in the amount of 7 billion rubles for the program of preferential car loans, and 6 billion rubles — for the program of preferential leasing of motor vehicles.

in addition, the Cabinet was requested until may 15 to present measures that will allow to work the dealers and organizations, producing and supplying components for production of vehicles.

Earlier, experts of the consulting company PwC has not excluded that sales of new passenger cars in Russia by the end of the current year may, in the framework of the stress scenario, to fall off 30% from 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.

prior To this consulting company The Boston Consulting Group presented its forecast that sales of new passenger cars and light commercial vehicles (LCV) in Russia by the end of this year will fall to 25-37% of the previous year because of the pandemic coronavirus infection of 1.3 and 1.1 million vehicles.

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