Passenger Cars - Russia

Russia

Revenue in the Passenger Cars market is projected to reach US$34.9bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of -3.68%, resulting in a projected market volume of US$30.0bn by 2028.
The market's largest segment is SUVs with a projected market volume of US$13.9bn in 2024.
Passenger Cars market unit sales are expected to reach 1,075.00k vehicles in 2028.
The volume weighted average price of Passenger Cars market is expected to amount to US$27.94k in 2024.
With a vehicle unit sales share of 16.0% in 2024, Lada is expected to have one of the highest market share in the selected region.
The value market share of the make Mercedes-Benz in the selected region is expected to stand at 15.8% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$558bn in 2024).

Key regions: United States, Germany, Europe, China, India

Market

Make

Region

Region comparison

Currency

Analyst Opinion

The Passenger Cars market in Russia has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Russian Passenger Cars market have been shifting towards more fuel-efficient and environmentally friendly vehicles.

This trend is largely influenced by global concerns about climate change and the need to reduce carbon emissions. As a result, there has been an increased demand for hybrid and electric vehicles in Russia. Customers are also looking for cars with advanced safety features, comfortable interiors, and the latest technology such as connectivity and infotainment systems.

Trends in the Russian Passenger Cars market include the increasing popularity of SUVs and crossovers. These vehicles offer a combination of spaciousness, versatility, and off-road capabilities, making them appealing to Russian customers who often face challenging weather and road conditions. Additionally, there is a growing demand for luxury cars, as the Russian middle class continues to expand and consumers seek to display their wealth and status.

Local special circumstances in Russia also play a role in shaping the Passenger Cars market. The vast size of the country and its diverse climate create unique challenges for car manufacturers. For example, vehicles need to be able to withstand extreme cold temperatures in Siberia and navigate poorly maintained roads in rural areas.

Additionally, the Russian government has implemented policies to support domestic car production, which has led to the growth of local manufacturing plants and the availability of more affordable cars for Russian consumers. Underlying macroeconomic factors have also contributed to the development of the Passenger Cars market in Russia. The stabilization of the Russian economy after the 2014 economic downturn has resulted in increased consumer confidence and spending power.

This has led to a higher demand for cars, especially among the emerging middle class. Additionally, low interest rates and favorable financing options have made it easier for consumers to purchase new cars. Overall, the Passenger Cars market in Russia is evolving to meet changing customer preferences, driven by trends such as the demand for fuel-efficient and technologically advanced vehicles.

Local special circumstances, such as the need for vehicles that can withstand harsh weather conditions, and underlying macroeconomic factors, including a growing middle class and favorable financing options, are also influencing the market. As a result, the Passenger Cars market in Russia is expected to continue growing in the coming years.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).