Official car sales jump 71% in April on a low base

Sales of new passenger cars and light commercial vehicles (LCV) in Russia increased by almost 71% in April compared to April last year. This is stated in the report of the committee of automakers of the Association of European Businesses (AEB). In total, 54,270 cars were sold over the past month.

A sharp increase in monthly sales year-on-year was expected due to the ultra-low base of April 2022. Last year’s April marked one of the lowest sales of passenger cars and LCVs on AEB’s record. Then, due to the beginning of the SVO, the massive cessation of the shipment of cars by foreign automakers, the jump in exchange rates and prices for cars, the market immediately sank by 79% in annual terms to 32,706 cars sold.

Market leaders in April 2023 are represented by domestic and Chinese automakers. AvtoVAZ sales more than tripled to 27,635 vehicles. The closest pursuer – the Chinese Haval – sold only 7352 cars, but showed a nine-fold growth year-on-year. In third place is Geely, another auto concern from China, its sales grew 14 times to 6113 units. Rounding out the top five are domestic GAZ and UAZwhich sold 4012 (doubling) and 2357 (+45%) cars respectively.

According to the results of the first four months of 2023, the market, however, continues to decline due to the relatively high base of the first two months of 2022. Thus, in January-April of this year, sales of new passenger cars and LCVs decreased by 38% to 177,034 units technique follows from the AEB data. The top five brands by brands look the same as in April.

The AEB traditionally calculates sales based on data provided by the associations to manufacturers and official importers of cars on the Russian market. Thus, the association’s statistics do not display cars imported and sold in Russia on parallel imports, as well as information about some brands that refused to provide it on a monthly basis (for example, the Chinese Chery). Such cars are visible only in the results of vehicle registrations for the reporting period.

According to the registration data, which is considered by “Avtostat” together with the electronic PTS system, 75,600 passenger cars were sold in Russia last month. This is almost three times more than in April 2022. The agency’s experts also explain such a sharp increase in the market by the low base of the previous period.

44% of all passenger cars sold last month, or 33,200 units, were Chinese brands, Avtostat calculated. Domestic brands own 35% of sales, which is 26,700 units of equipment. The total share of other market participants in April amounted to 21%.

In January-April 2023, according to registration statistics, 246,914 cars were sold in Russia, which is 15% less compared to the same period last year.

Auto expert Vladimir Bespalov expects that in 2023 the growth in the segment of new passenger cars will be approximately 27%, and in absolute terms, sales will approach the mark of 800,000 units. According to him, the April growth of the market is essentially caused by a mathematical effect, since a year ago sales sank very much. The current dynamics in the market is unlikely to continue, although its capacity in Russia is much larger than the current values, the expert states.

“There is still a shortage of supply, especially in the middle price segment, and high prices remain, so for many, buying a car does not look attractive yet. The choice of a potential buyer is still limited. All this will hinder the development of the market,” the expert stated.