The share of leasing in the new car sales, on vehicles mostly imported to Russia through indirect “parallel imports”, does not exceed 6% of the total market, Kommersant daily reported citing car dealers and leasing companies.
The car leasing market is thus expected to shift from new cars to used vehicles.
Analysts surveyed by Kommersant expect a gradual saturation of demand for cars in the premium and luxury segment which occupy the overwhelming share of this channel of supply. At the same time, the sales in the official dealership market could still recover due to the increased supply of Chinese brands.
In May 2023, about 81,000 car leases were issued for a total of RUB118bn, according to Frank RG.
As followed by bne IntelliNews, following Russia's full-scale military invasion of Ukraine, the production of cars in Russia almost completely ceased in the summer months as the sector ground to a screeching halt.
Car sales in Russia collapsed by 58.8% in 2022 to 687,370 units (chart) and are only expected to recover to pre-war levels in 2027.
Lada Granta of AvtoVaz last year remained the only domestically assembled model on the Russian car market and the only budget offering, while also being the beneficiary of the preferential car loan programme.
Related Articles
Profit of Russian SovcomBank down 50% in 1Q25
Publicly listed Russian Sovcombank posted a 50% year-on-year decline in IFRS net profit to RUB12.5bn ($172.8mn) for 1Q25, as monetary tightening and a stronger ruble weighed on core banking ... more
Russian Bank Saint Petersburg ups profit 19% in 1Q25
Top dividend payer in the Russian banking sector Bank Saint Petersburg posted a 19% year-on-year increase in net IFRS profit to RUB15.5bn ($214.3mn) for 1Q25, supported by a robust net interest ... more
First Russian bank branch to open in Iran as Mir Business Bank
The Central Bank of Iran has issued a permit for the opening of the first Russian bank branch in the country, Donyaye Eqtesad reported on May 16. Mir Business Bank, a Russian bank partly ... more
Most Read
-
Armenia courts African countries to supply diamond industry
1 month ago
-
Russia’s Alrosa finds its largest diamond ever, as Mirny mining operations restart
13 days ago
-
COMMENT: Embracing “Greater Central Asia” has become a strategic imperative for US
24 days ago
-
From blood diamonds to critical minerals: Sierra Leone’s mining transformation
1 month ago