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VTB forecasts increased car sales in Russia following last year's decline

It is reported that the price of cars is an important component that will determine the market's slow recovery

MOSCOW, January 26. /TASS/. VTB predicts that new car sales in Russia would increase by 6% this year after a drop in 2022, the bank said in a press release.

According to auto industry experts, 662,000 new passenger cars were sold in Russia last year, which is 60% less than the figure for 2021.

"According to VTB projections, over 700,000 new cars will be sold on the Russian market this year, representing a nearly 6% increase over last year. As a result, after a decline in 2022, the segment will resume growth," the statement said.

The price of cars is an important component that will determine the market's slow recovery, according to Vladimir Vysotsky, Vice President, head of VTB can loan sales department.

"After a sharp rise in the spring of last year, car prices had stabilized by the beginning of the fall season. According to VTB forecasts, the price growth rate will slow down in the next twelve months in the absence of sharp market fluctuations. ... At the same time, key market players in 2023, in addition to Russian AvtoVAZ, will be Chinese manufacturers," Vysotsky was quoted in the bank's press service.

Vysotsky previously predicted that by 2023, almost 50% of new cars sold in Russia will be bought using loans. According to VTB forecasts, the share of loans in the new car segment could increase by 6-7 percentage points (p.p.) this year, reaching around 45%. According to VTB, such sales can exceed 50% in some months.

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