Russian car sales collapse as Ukraine war leads to supply, price shocks

Kazakh automobiles

With new cars hard to come across in Russia and accelerating inflation threatening to devalue their savings, some Russians have turned to neighboring marketplaces that have remained open up to them.

Russian consumers accounted for about 10 per cent of revenue at Autodom in the Kazakh metropolis of Kostanay, 180 km (110 miles) from the border, according Yevgeniy Biber, the dealership’s revenue main.

Formerly, they built up about 1 per cent of purchasers, he explained.

Even just before the crisis, Russia was currently battling a deficit of new autos due to provide chain disruptions and distribution delays that the automotive business has contended with globally.

Russian new auto sales previous yr were being down practically 50 % from their peak in 2012 as the financial state stagnated considering the fact that the 2014 annexation of Crimea from Ukraine.  

Amid a dearth of elements required to hold factories open up, Interfax reported that AvtoVAZ ideas to introduce a stripped down edition of its Lada brand name created with a minimum of overseas pieces these types of as airbags and anti-lock brake methods.

Car revenue in March were being between the worst in the previous 15 decades, in accordance to Azat Timerkhanov of Russia’s Autostat consultancy.

“If Europe isn’t going to restore deliveries, China will be the principal beneficiary, at minimum in conditions of marketplace share,” Timerkhanov mentioned. “But volumes are likely to continue on to slide.”

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