South Korean media: Russian car sales were "halved" in March, Chinese car market share declines!

On May 20, South Korean media "THE GURU" published an article stating that since the beginning of this year, the Russian car market has been in a slump. Compared to the previous year, Russia's car sales have "decreased by half." The increased cost of purchasing vehicles and economic uncertainty have dampened consumer confidence. In addition, expectations that major auto manufacturers such as Hyundai may return to the market have led consumers to delay buying new cars.

According to industry insiders, Russia's car sales plummeted by 46% year-on-year in March to 92,000 units. Cumulative sales for the first quarter also fell by 28% year-on-year to 283,000 units. It is reported that currently there are 800,000 vehicles in stock domestically in Russia.

Analysts also point out that the growth momentum of Chinese cars, which account for more than half of the Russian market, is slowing down. In the first quarter, China's car exports amounted to 123,000 units, a year-on-year decrease of 39%. Market share also dropped from 60% to 55%.

The increase in local vehicle scrappage taxes and rising loan interest rates have reduced demand. Russia's vehicle scrappage tax was raised by up to 85% from October last year, and the current car purchase loan interest rate has reached 18%.

Rumors of the return of major brands such as Hyundai and Toyota have also prompted consumers to adopt a wait-and-see attitude. In fact, Hyundai Motor Company is considering reacquiring its St. Petersburg plant, which it sold in 2023, while Japanese Toyota and German MAN and other automakers are also considering re-entering the Russian market.

A South Korean industry insider said, "The growth strategy centered on price and quantity that led the Russian market in 2022-2023 is facing limitations. Consumers' preference for brand and quality is spreading, and with rumors of the return of global brands like Hyundai and Toyota, the trend of market restructuring is becoming more evident."

Original article: https://www.toutiao.com/article/1832615095788554/

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