Sales to Europe and the US on the rise due to re-exports of used cars

17 may 2016 | Rossiyskaya Gazeta

The weak ruble sparked off a boom in sales of cars from Russia to the EU and the US. The editorial staff of Rossiyskaya Gazeta tried to look into what caused this success of the Russian automotive industry abroad.

Grigoriy Mikryukov
Grigoriy Mikryukov
Department for Sectors of Economy

Sales of cars from Russia in the EU and the US are growing primarily as a result of mostly expensive and luxury used cars being bought in Russia and sold abroad, Grigoriy Mikryukov, the Deputy Head of the Department for Sectors of Economy of the Analytical Center, told the journalist.

"For example, the average price of a car sold in Egypt is USD 8.4 thousand, which is equivalent to the price of new mass produced models in Russia. So, we are seeing new economy class cars being shipped there, including cars assembled by international automakers at Russian plants. In the meantime, the average price of cars shipped from Russia to the US has reached USD 67.3 thousand and those clearly are not cars made in Russia," Rossiyskaya Gazeta quotes the expert.

In 2016 the average price of cars being exported from Russia to far-abroad countries went up from USD 20 thousand to USD 29 thousand, so we can hypothesize that it is the car re-export that plays the crucial role in this, specified Mr. Mikryukov.