Friday, November 04 2022, 12:55 am
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Like the penalties United States and the West has hit the industry hard Russia, one of the most affected sectors is the automotive sector, where all foreign manufacturers have left the country. In these conditions, Fly resorted to an extreme measure, importing used cars right from Japanfor over 7,400 kilometers.
Sales of new cars produced in Russia have declined since Moscow sent tens of thousands of soldiers Ukraine in late February, with sanctions limiting access to parties and many foreign producers suspending operations in the country, according to Reuters.
Their withdrawal and the strengthening of the ruble have pushed up demand for used cars in Asia, with logistical challenges partly to blame as prices were about 10 percent higher in September than at the start of the year. Moscow’s central bank said late last month.
Imports, which accounted for around a fifth of the market by volume and half of revenues, have yet to fully recover. New car imports were well below February to August levels, according to data from Russian analysis agency Autostat, but used car imports doubled to 23,117 from 11,055.
Most of the used cars came from Japan, 76%, with Belarus in second place with a 5.3% share, according to the data.
The Japanese car manufacturer Nissan suffered a $ 687 million loss last month after selling its Russian business to a state-owned entity for one euro while rival Toyota ceased production of vehicles in Russia.
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Almost 70% of the 10,257 new cars imported in August came from China, show the statistics. Bilateral trade between Russia and China has increased this year.
The Association of European Business (AEB), which represents companies present in Russia, has revised its forecast for new car sales for 2022 to a decline of about 50% from the projected increase of 3.3%. Between January and September, new car sales fell nearly 60% to 506,661 units.
