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Cars in Russia to cost over a million

At the beginning of the year, car prices in Russian started to rise amidst the VAT hike, a decline in the ruble, and other factors. Experts fear that the cost of cars in the Russian market will reach a minimum of RUR 1 mio ($15,200), Izvestiya newspaper reports.

As Invest Foresight previously reported, the cost of Lada Vesta already exceeded RUR 1 mio. The price of one of the most popular budget-oriented cars, Hyundai Solaris, has also reached this sum. Market participants note that in early 2019 prices showed an increase of 2-3%, which occurs every year. However, this time the price increase has continued, with the cost of Hyundai growing by up to RUR 65K ($990), Peugeot by RUR 80K, Renault by RUR 38K, Mitsubishi by RUR 60K, and AvtoVAZ models by RUR 25K. Prices of Subaru car models, popular with Russian motorists, has increased by RUR 50K-100K.

According to Autostat analytic agency, last year the average car price (excluding premium segment) increased by 10% and reached almost RUR 1.2 mio ($18,250). Luxury cars prices grew by 5% and exceeded RUR 4 mio.

Prices of certain luxury car models rocketed. One year ago, a standard BMW 3-series cost less than RUR 1.9 mio ($28,900). This past fall, a new generation of cars by the German manufacturer entered the market – this resulted in the price of at least RUR 2.58 mio, increasing by RUR 700,000.

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