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.
