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Russia expects higher prices for Chinese cars

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Moscow, February 15 – Car dealers expect a slight increase in prices for new Chinese cars in Russia in the next three months due to the weakening of the ruble and the ever-rising cost of logistics, industry representatives interviewed by the News Agency say.
“We could expect a certain increase in retail prices due to the depreciation of the ruble and the constant rise in the cost of logistics, but now the profit margin for Chinese brands is very large,” said Maxim Zlatokrylets, director of sales of new cars. In Rolf, to answer a question about the growth of Chinese car prices in the next three months.
He also explained that the peak of growth was in the spring of 2022. At the same time, while the increase in prices for Korean and Japanese brands was caused by limited availability, the increase in prices for Chinese brands was due to the general trend in the market and the opportunity for them to quickly increase profitability.
The Association of “Russian Auto Dealers” confirmed the trend of a sharp rise in prices for Chinese cars in the spring. For some models, their price has increased by a million or more. However, additional price growth was moderate during the year. “The significant increase in prices for Chinese manufacturers last year slowed down in 2023 due to a decrease in purchasing activity. The growth of the market share itself is naturally observed, because in reality there is no obvious competition except for local brands. But in the near future if there is an increase in prices, it is insignificant under current economic conditions.”
“During 2022, prices for Chinese cars in Russia will increase from 30% to 75%. A new car can be bought from China from 2 million rubles. Presumably, in the coming months, prices for foreign cars (including Chinese ones) can grow on average. ​​10%, and the cost of cars will depend on exchange rates and supply chain routes. The dealer also did not exclude that due to the decrease in consumer demand for cars in the Russian Federation, in the coming months, Chinese car brands will keep prices at the level of the end of 2022.
The press service of the AvtoSpetsCentre group of companies said that prices for new Chinese cars will not fall, since there are no prerequisites for this. At the same time, their turnover in the Russian car market may reach 40% due to the emergence of new brands (Omoda, Tank) and the expansion of the dealer network.

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