MOSCOW -- Sales of new cars in Russia rebounded in 2023 to 1.06 million units, data from Russian analytical agency Autostat said, as the industry partially recovered from sanctions and the departure of many foreign automakers.
The revival, a 69 percent year-on-year increase, fell short of car sales in 2021, the year before Russia launched what it calls a "special military operation" in Ukraine, when 1.51 million vehicles were sold.
In December 2023, sales were 110 percent higher year-on-year, the data from Autostat and its partner consulting company PPK showed.
Chinese automakers have been meeting the demand left by their departing Western competitors. But Chinese car sales appear to have peaked at more than 56 percent of the market as Russia's domestic production now recovers.
This year, Autostat experts believe sales will increase by 18 percent to 1.25 million units, or a 32 percent increase to 1.4 million units in their more optimistic scenario.
Autostat head Sergei Tselikov said Chinese automakers and local producers would meet growing demand in 2024.
"There is a desire (from Chinese carmakers) to sell up to 2 million on the Russian market and there is a desire from people to buy them," Tselikov said at a conference.
Kerrigan Advisors recently sat down with Donnie and Denny Buckalew, co-owners of Buckalew Chevrolet, the 5th highest-volume Chevrolet dealership in Houston, Texas, to discuss their perspective on the changing auto retail industry and how challenges facing single-point dealers influenced their decision to sell their dealership.
Factories idled since Western automakers departed over Russia's actions in Ukraine are also likely to restart this year, Tselikov added.
In its pessimistic scenario, Autostat envisages a decline in sales to 1 million units this year.
