Russians are still devoted to European and South Korean car brands

Russians are still devoted to the usual European and South Korean car brands, despite the lack of their official supplies to the Russian Federation and the influx of Chinese cars. The most active demand on marketplaces in 2023 among cars under three years old was enjoyed by Hyundai and Kia, as well as popular models from Toyota and VW. In the premium segment, half of the top 10 were BMW models. Dealers and analysts indicate that in the premium segment, demand for traditionally popular brands will continue, despite the tightening of import conditions. In the mass segment, customers are likely to completely switch to officially presented cars.

Avito Auto named the most popular cars under three years old in 2023. The assessment was based on the number of contact requests in advertisements. The top 10 models in both the mass and premium segments included mainly brands that were popular in past years, but which have not been officially presented since 2022. So, in the mass segment these are Hyundai Solaris and Kia Rio, popular business sedans Toyota Camry and Kia K5, as well as Volkswagen Polo and Kia Sportage. Of the cars that could be officially purchased in the Russian Federation, there are only two models on the list – Lada Granta and Vesta, as well as two Geely cars – Monjaro and Coolray.

Geely models were actively imported into the Russian Federation, bypassing the distributor, including by individuals through the EAEU countries, since it was cheaper. But from April 1, this opportunity will apparently be closed, since the Russian government has now ordered that the difference in duties and other payments be paid when clearing a car through customs in other EAEU countries. At the same time, Korean bestsellers can return to the market: AGR bought the Hyundai plant in St. Petersburg and began producing cars under the Solaris brand. The HC and KRS models are copies of the Hyundai Solaris and Kia Rio (see Kommersant-Online, February 22).

In the premium segment, half of the top 10 are occupied by BMW models. The brand was the leader in the premium segment before the crisis, but has not officially supplied cars to the Russian Federation since 2022. Also on the list are the Lexus RX, Mercedes-Benz G-Class AMG and E-Class. In addition to them, two Chinese electric cars were included in the top 10: Zeekr 001 and Voyah Free. Zeekr is not represented in the Russian Federation, but it was the brand’s electric cars that became the bestsellers among electric cars in 2023, Autostat estimated. Voyah in the Russian Federation is officially imported by Lipetsk Motorinvest, however, versions intended for China can also be found on marketplaces and at dealers. But from October 1, 2023, there was a ban on the parallel import of brands that are officially presented in Russia.

In 2023, the share of imports bypassing official distributors accounted for 12% of the car market, Autostat estimated. This is about 130 thousand cars. At the same time, the top 10 of the new car market (taking into account cars up to three years old) is completed by the brands Kia (33.6 thousand), Hyundai (24.6 thousand) and Toyota (23.3 thousand), despite the lack of official deliveries. Sales of BMW cars amounted to 9.1 thousand and exceeded, for example, the officially presented Jetour.

Dealers believe that, despite the restrictions, demand for brands popular before the crisis will continue. “Its level may decrease with more expensive versions, but in general the dynamics of interest are now stable,” says Alexey Starikov, deputy head of Avilon. Perhaps the demand for German and Korean cars will decline against the backdrop of customs changes and an increase in recycling collection, says Maxim Solodovnik, director of used cars at Fresh. He recalls that owners have already had problems, for example, with diagnosing BMW and purchasing spare parts for Hyundai and Kia. “However, at such moments, the auto business always shows flexibility and finds ways to solve problems, so you shouldn’t expect a critical drop – other schemes will appear,” he believes. “It is unlikely that it will be possible to quickly “transplant” a buyer who wanted a new BMW to cars, for example, of domestic brands,” continues Mr. Solodovnik. “It is possible that the focus will shift towards older models.”

Automotive expert Vladimir Bespalov believes that given the growth of import barriers and the expansion of production in the Russian Federation, demand in the mass segment will gradually move away from imports towards local offers. At the same time, in the premium segment, sensitivity to price is lower, and here demand will continue to persist to some extent.

Olga Nikitina