Reeling from the coronavirus pandemic and a shortage of microchips for car manufacturing, auto retailers are facing the fallout from sanctions against Russia. Most suppliers of imported cars have stopped shipments. Then, due to problems with the delivery of components, Russian car factories began to stop. Now assembly in Russia continues only UAZ and Chinese Haval. AvtoVAZ plans to launch.
The deficit that emerged in car dealerships and a sharp (sometimes up to 60%) increase in prices for new cars reduced the interest of customers in buying cars. Car dealers are forced to switch to sales of used cars, considering the meager supply of new cars as a pleasant bonus.
As a result, in the auto retail segment, the risks of players leaving the market, mergers and acquisitions are the highest. The largest player in the market, Rolf, was also to be sold to the regional car dealer holding Klyuchavto. But the deal was put on pause in the spring, its closure is in question. Rolf’s CEO Svetlana Vinogradova did not answer Vedomosti’s questions about this deal, but in general, according to her, up to half of the players could leave the auto dealer business.
– Is the situation in which the auto retailer finds itself now unique?