Feb 24 • 04:28 UTC 🇵🇱 Poland Rzeczpospolita

War Drives Prices Up. Cars in Russia More Expensive Than in Germany and the USA

The average price of a new car in Russia has increased by 46% due to the war, making it one of the most expensive car markets globally.

Over the past four years of Putin's war, the average price of a new passenger car in Russia has surged by 46%, reaching approximately 160,000 PLN (nearly 46,000 USD). According to calculations by the Russian analytical agency Awtostat, which monitors the domestic automotive market, Russia now ranks fifth among the world's most expensive car markets, following Canada, the United Kingdom, the United States, and Israel. Sergey Celikov, the head of Awtostat, notes that given consumer preferences in different countries, Russia may actually rank even higher in this list.

In contrast to high average prices in Canada and the United States, which stem from the significant number of expensive vehicles sold—such as large SUVs and pickups—Russia's automotive market still shows consumers opting for lower-priced models but at premium prices. This highlights a notable disparity where Russian consumers are faced with high pricing, yet the availability of budget options continues to dominate, especially with the Lada brand being a favorite despite its low-cost perception.

This situation has broader implications for consumers in Russia, who are adjusting to significant inflation and a changing economic landscape due to the ongoing conflict. As the prices of vehicles continue to rise, it reflects not only on consumer choices but also on the overall economic climate, influencing everything from disposable income to purchasing decisions in a country increasingly isolated from Western markets due to sanctions. The automotive sector's dynamics may serve as a barometer for the country’s economic health moving forward.

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