The Russian auto market’s increased demand for new passenger cars has caused inventory shortages, and these shortages have caused Russian authorities to suspend State programs of industry support.
In May, for example, the number of the cars sold increased by 2.3 times, compared to same period in 2020. This growth is partly the result of pandemic restrictions last year. A total of 663,000 new cars have been delivered to the customers this year, up 39% from a year ago.
Another reason for the shortage of cars in Russia is a shortage of semiconductor chips.
Earlier, the ministry of trade and industry planned to resume car privileged credit programs, but now these plans have been cancelled. An increase of utilization fees was also postponed.
Experts say that without State support car sales will decrease, and this Autumn there will be no deficit of popular models. Read The Article
PSR Analysis: The Russian passenger car market is definitely overheated. Still, there are no serious reasons for this other than pent-up demand. So, this situation won’t last for long time. Also, postponing an increase in the utilization fee will give additional support to the market. When the fee is increased, it probably will cause the market to decline. PSR
Maxim Sakov, is Market Consultant – Russia Operations, for Power Systems Research
