Russian sales of passenger cars, LCVs in Oct reach all-time high since 2014 amid rise in recycling fees, relaunch of govt support measures for demand
MOSCOW. Nov 2 (Interfax) - Sales of new passenger cars and light commercial vehicles (LCV) in Russia jumped 51.6% year-on-year to 184,698 vehicles in October 2024.
The market showed growth of 17.1%, Russia's Industry and Trade Ministry reported, citing data from JSC Passport Industrial Consulting, which is a joint venture between the Autostat analytical agency and the JSC Electronic Passport manufacturer's certificate of origin compared with September this year, when the ministry estimates that 157,785 passenger cars and LCVs were sold.
Specifically, the number of passenger cars sold last month totaled 168,483, up 51% year-on-year and 15% month-on-month; LCVs totaled 16,215, up 54% and 41% respectively; trucks totaled 13,015, up 2% and 31%, respectively; and buses totaled 1,803, up 56% and 78%, respectively.
In January-October 2024, 1,541,853 motor vehicles of all types were sold, up 48% year-on-year. In particular, a total of 1,421,158 passenger cars and light commercial vehicles were sold in Russia since the beginning of the year (+56%), including 1,309,396 passenger cars (+58%), 111,762 LCVs (+38%), with 104,261 trucks were sold (-10%), and 16,434 buses (+15%).
The Industry and Trade Ministry data indicate that October sales results for all types of vehicles, except buses, showed record monthly results this year. The agency has been publishing its version of market statistics monthly only since last autumn, which does not allow for direct comparison with earlier periods. However, Association of European Businesses (AEB) data show that the passenger car and LCV market domestically last showed a higher monthly result in December 2014, when almost 270,700 vehicles were sold in the country.
Market growth in October occurred amid a rise in the recycling fee from October 1, which increased 70%-85% for a lengthy list of motor vehicles. This date saw the introduction of a scale of further planned indexing of 10%-20% each year over the next five years beginning on January 1, 2025. For example, the recycling fee for a new passenger car from the most popular segment with an engine size of 1-2 liters rose from 300,600 rubles to 556,200 rubles from October. From January 1, 2025, it is expected to increase to 667,400 rubles, and to almost 1.2 million rubles by 2030 following a series of indexations.
When approving the recycling fee in mid-September, the Industry and Trade Ministry also announced the relaunch of measures to stimulate demand for cars, including a program of preferential car loans and leasing for which the ministry has allocated a total of 14.5 billion rubles. "A total of 6.5 billion rubles is allocated for the program of preferential car loans and 8 billion rubles for preferential leasing. Overall, these measures will help to sell more than 36,000 additional vehicles," the ministry said.