The total amount of automotive loans issued in Russia from January to June 2023 almost reached RUR 500 bln ($5.2 bln), or 61.4% more than in the same period last year. Overall, Russians took out RUR 309.7 billion to buy cars in January-June 2022.
Fyodor Sidorov, private investor and founder of the School of Practical Investment, believes that RUR 500 bln in car loans is a very significant figure, let alone the year-over-year surge.
“I would say it is one of the consequences of pent-up demand – last year, global automakers began to leave Russia, and official dealers put prohibitive price tags on the remaining stock, so many customers decided to postpone the purchase of a car,” the expert explains. “There was also uncertainty about the availability of spare parts and after-sales service, and prices temporarily became mind-boggling.”
Today, the supply chains have recovered; that is no longer a problem. Prices have come down, too. Hence the result: people are buying cars again, the investor notes.
“Moreover, the used car segment saw the largest increase, as Russians were twice as likely to get loans to pay for used cars than for new ones. New cars are still in short supply, and the prices significantly exceed the financial capabilities of most Russian families, Fyodor Sidorov says. “However, the situation has begun to improve due to the Chinese auto imports. Chinese makes are gaining more and more popularity.”