Automotive market experts predict an increase in the cost of new foreign cars in 2024 by between 20% and 40%

According to analysts, in the next year we can expect:

• increase in the average cost of new foreign cars by 20% to 40% (data from the FRESH car market),
• the average price of a new foreign car is up to 3 million rubles after the first increase (now the average price is 2.8 million rubles, according to ROAD),
• Dominance of Chinese models – about 50% of the market for foreign new cars, which are the least likely to increase in price due to the oversaturation of the market with offers of Chinese models and the competition between them (the Otkritie Auto version and Avtodom Group of Companies),
• the maximum increase in prices of Korean brands Hyundai and Kia (due to the decision of the country’s government to limit the import of cars with a displacement of more than two liters to the Russian Federation),
• complete absence of a segment of inexpensive foreign brands worth up to 1.5 million rubles.

According to Autostat, since January 2023, new foreign cars have increased in price by 27%; Something similar will happen with the market in 2024. The price increase is due to several factors:

• distributors who withheld price increases for the sake of New Year’s sales will “publish” prices,
• then growth will follow inflation throughout the year,
• Subsequently, much will depend on demand (experts do not agree on this: some expect stagnation, others predict the activity of buyers, since in 2023 the Russian market did not receive about 1.5 million new cars, which which created a large unmet demand).

Experts practically do not comment on sales volumes. Only ROAD notes that “official dealers can sell 1.8 million cars from China in the Russian Federation” and due to the expected increase in prices, consumers will switch to used cars, but by the end of 2024 no more than 7 millions of them be bought.