Avilon does not see grounds for swift return of automakers who left Russia
MOSCOW. April 18 (Interfax) - There are currently no real grounds for the swift return of foreign automobile brands that left Russia, and even if sanctions are lifted this process could take years, the CEO of Russian car dealer Avilon, Alexander Nikonov said.
"Demand slowed significantly in early February on rumors that some brands that left will return, which was also fanned by publications in the media. There were many questions and discussions about this matter, including behind closed doors. We continue to stay in contact with automakers, including American and Korean ones. The pressure of rumors that Western brands will return tomorrow is now decreasing, but it still persists on the market. But there is no real information about a brand returning," Nikonov told reporters.
Even if one presumes that sanctions against Russia will be lifted, the return of foreigners to the Russian market could take at least three years, he said.
"I don't mean the opening of official representative offices, I mean shipments of automobiles. Because one needs to plan production of automobiles at the plant, which takes about six months. Then you need to produce them, then again certify, because they are now not certified, and this is about another eight months. So, no, this will not happen fast. Furthermore, no automaker is currently seriously discussing the question of returning," Nikonov said.
The Association of European Businesses (AEB) said earlier that expectations that foreign auto brands that previously left Russia would return to the country had become an additional factor putting pressure on the Russian auto market.
"The negative dynamic intensified because the factors repeatedly mentioned previously, such as high financial burden, were exacerbated by buyers' expectations, amid news of possible changes in geopolitics, of a likely return to the Russian market by some companies that previously left. Some clients decided to wait a little longer, thus increasing the amount of deferred demand, which in future could lead to growth," the head of the AEB's automakers committee, Alexei Kalitsev said in a press release on Russian automobile sales in March and the first quarter of 2025.
Sales of new cars and light commercial vehicles (LCV) in Russia plunged 26% to 254,069 vehicles in the first quarter, including 45% to 83,095 in March, the AEB reported.
The Avilon Group's portfolio includes 58 automobile brands. The group includes divisions that buy and sell used vehicles, electric vehicles, luxury cars and motorcycles.
Avilon sold 32,500 automobiles in 2024, with sales of new vehicles growing 12.9% to 23,376 and sales of used vehicles increasing 20% to 9,168. The group's revenue grew by 20% to 100.9 billion rubles.