According to Reuters story from February 17, 2023, Western sanctions related to the conflict in Ukraine caused Russian spending on new automobiles to fall by nearly 50% in 2022.
The sanctions have significantly impacted the Russian auto industry, which is heavily dependent on foreign suppliers and imported components.
As a result, there has been a sharp increase in the sales of used cars that are less expensive.
According to data from the research firm Autostat, spending on new automobiles decreased by 52% last year to 1.5 trillion roubles ($20.4 billion), and the number of new cars sold decreased by 58.8%.
Additionally, Western automakers stopped output and sold factories, causing the industry to reach its lowest point since the fall of the Soviet Union in 1991.
Almost 75% of all vehicles sold in 2022 were pre-owned, up from 55% in 2021, with the bulk being cheap Ladas and Chinese vehicles.
Despite a 14% increase in spending on used automobiles, inflation raised prices and decreased living standards, which resulted in a 15% decrease in expenditure on new and used passenger cars.
According to Autostat, the average cost of new automobiles sold in 2022 climbed by 17% to 2.33 million roubles, while the average cost of used cars increased by 32% to 890,000 roubles.
As a result, industry analysts anticipate this year’s new car sales will reach about 800,000, up from 687,370 in 2022 but still well behind the more than 1.6 million vehicles sold in 2021.
Comment Template