Auto.ru Market Share Russia, Used cars Sales Russia-Ken Research

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Russia Used Car Market Research Report-Ken
Research
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Russia has been the largest producer of natural
gas and second largest exporter of crude oil in
the world. This makes Russias economy to be
majorly dependent on revenues generated through
export of crude oil and gas. Russia has examined
economic depression during the year 2014-2015 due
to sudden decline in crude oil prices from USD
per barrel to USD per barrel. This has lead to
significant decrease in value of currency,
reduction in the real income and purchasing power
of the people. Economic slowdown in Russia led to
decrease in market size of used car from sale of
million units in the year 2012 to sale of
million units during the year 2017 at a negative
CAGR of during the period 2012-2017. Whereas,
increase has been observed in revenue generated
from sale of used cars due to increase in average
ticket size of cars from RUB thousand in 2012
to RUB thousand in 2017. Revenues generated from
sale of used cars has increased from RUB
trillion in the year 2012 to RUB trillion
during the year 2017 at a CAGR of during the
period 2012-2017. Share of Domestic brand cars
has increased to during the year 2017 from
during the year 2015. Significant increase in
domestic brand car sale has been observed majorly
due to economic depression prevailing in the
country and decline in purchasing power of the
people. Online companies has accounted share
in the sale of used cars in Russia during the
year 2017. Sale of Used Car by Type in Russia
has observed as the major segment in used car
market. In this segment sedan dominates the sale
of Russia Used Car Market. Percentage sale of
sedans in Russia has been accounted as during
the year 2017.
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People in Russia mostly prefer sedan for their
personal use as well as for commercial purpose.
People in Russia are mostly attracted towards
sedans cars as they come into their budget and
have high average car life. Crossovers and SUVs
remains the second most preferable used cars in
Russia. Percentage sale of crossovers has
accounted for during the year 2017. It is
expected that the percentage sale of crossovers
will increase in future. Demand for SUVs and
Crossovers has been increasing rapidly in Russia.
Hatchbacks accounted for third largest sold used
cars in Russia. Hatchbacks are generally used for
both personal and commercial purpose such as in
Taxies and by travel agencies to rent them out
later on daily basis. Percentage sale of
Hatchbacks has accounted for during the year
2017. In Russia, used cars are majorly sold
through online platform which directly connects
customer to customer. Sale of used cars through
online channel eradicates middle men and ensures
transaction to be completed at low cost as middle
men commission gets eliminated. Significant
growth has been observed in number of internet
users in Russia during the period 213-2017.
Number of internet users has reached up to
million in 2017 from million in 2012at a CAGR
of during the period 2013-2017. Increase in
number of internet users turns out to be a most
important factor for increase in sale of used
cars through online channel. People in Russia
generally prefer to purchase used cars from
online platform due to assurance of car quality
as fit and certified cars are only listed through
online companies.
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People in Russia has tendency to purchase
products online at their convenience. Online
channel offers large variety of used cars on a
single click and allows person to compare
different cars at the same time. On the other
hand, dealers of used cars in Russia are not
operating in entire country. Major outlets of
dealers are situated in large regions such as
Moscow, Moscow region, St. Petersburg and others.
Russia used truck market has observed decline in
sale of used trucks during the year 2016-2017.
Sale of used trucks in Russia has declined from
thousand units in the year 2016 to thousand
units during the year 2017. Top five companies
which have captured the highest market share for
sale of used trucks are KAMAZ, GAZ, Belorussian
MAZ, Zil, and Swedish Volvo. KAMAZ trucks has
accounted sale of thousand units of the overall
sale of used truck market during the year
2016.Sale of KAMAZ declined to thousand units
during the year 2017. Sale of GAZ trucks has
reached to thousand units of the overall sale
of the used truck market in Russia during the
year 2016. Growth in sale of GAZ trucks has been
observed during the year 2017, this lead to
increase in sale up to thousand units. Top five
best selling models of trucks under used truck
market are - KAMAZ 65115, The Volvo FH, KAMAZ
55111, KAMAZ 5320 and GAZ 3309. In Russia,
Finance Providers charge approximately as down
payment while sanctioning the loan amount and
average rate of interest is charged around to
. They also provide loan on zero percent down
payment and they charge heavy mortgage in return
from the customers whereas, under scheme freedom
of choice loan interest rates approximately at
zero percent down payment.
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In Russia, VTB bank reported that average loan
amount has increased approximately from RUB
thousand in the 1st quarter 2016 to RUB
thousand during the last quarter of 2016. Russia
used car financing has some of the major
constraints such as age of a car, high interest
rate on loan, origin of car, manufacturing age of
a car, car registration along with period of
term loan is maximum years in Russia. Used car
loan finance has contributed a major share in the
growth of used car market in Russia as easy
availability of used car loan attracted major
population to purchase used cars in Russia. Major
companies which provide loan financing services
in Russia for used cars are VTB24, Rusfinance
Bank, Unicredit Bank, MKB, Sistemel Bank and many
others. In Russia, there are major dealers
which provide used cars sale through their
various outlets present in number of nearby
region in Russia such as Moscow, Moscow Region,
St. Petersburg, Krasnodar Region, Rostov Region
and many others. Rolf Group remains the largest
dealers in Russia, it has accounted share in
the overall sale of used cars market in the year
2017, whereas Trans Teh Services remains the
second largest used car dealer in Russia with
share in the overall used car market sale during
the year 2017. On the other hand, Major online
companies of used car market in Russia are
Auto.RU, Avito.RU and CarPrice.RU, Drom.RU,
IRR.RU, Cars.RU, Am.RU, Bibika.RU and
CarsGuru.Net. Among all major online companies
Auto.RU has comprised maximum share of in the
sale of used cars in Russia during the year 2017.
On the other hand, Avito.RU has second highest
market share in sale of used cars with during
the same year. CarPrice
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RU and other online companies have accounted
and share respectively in sale of used cars in
2017. Russia used car market size is expected to
increase from sale of million units in 2018E to
sale of million units in 2022E at a CAGR of
during the period 2018E-2022E. Russia used car
market is expected to grow at a percentage of
in 2018E and it is expected that it will increase
by during the year 2022E. Average ticket size
of used cars is expected to increase in future
due to depression in economy and poor currency
exchange rate which lead to increase in the price
of new cars. This would automatically results to
a growth in average ticket size of used cars as
well. It has been expected that sale of domestic
brand used cars to grow at a CAGR of during
the period 2018E-2022E. It has been expected that
sale of domestic used cars in Russia will reach
up to million units during the year 2022E from
million units during the year 2017. Domestic
brand cars will hold in overall sale of Russia
used car market during the year 2022E. Whereas,
Foreign brand cars sale has expected to reach up
to million units during the year 2022E from
million units during the year 2017 at a CAGR of
during the period 2018E-2022E. Sale of used
cars through dealers is expected to reach up to
during the year 2022E. In future, shift in
sale of used cars by type has been expected such
as Crossovers and SUVs sale is expected to reach
up to million units during the year 2022E from
million units during the year 2017. Sale of
crossovers and SUVs is expected to increase at a
CAGR of during the period 2018E-2022E.
Crossovers and SUVs will account share in
overall sale of used cars in Russia during the
year 2022E.
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Crossovers and SUVs sale will dominate used car
market of Russia in future. In future, it has
been expected that the sale of sedans remains the
highest in Russias used car market. Sale has
been expected to reach up to million units
during the year 2022E from million units in the
year 2017. Growth in sale of sedans has been
expected at a CAGR of during the period
2018E-2022E. Percentage share of sedans is
expected to be during the year 2022E. In
Russia, used car market sale of hatchback is
expected to grow at a CAGR of during the
period 2018E-2022E. In future, sale of hatchback
has been expected to increase up to million
units during the year 2022E from million units
during the year 2017. Percentage share of
hatchback cars in used car market of Russia
during the year 2022E has been accounted to be
. Sale of other type cars such as Micro vans
and MPVs is expected to decline in future as they
have negative growth at a CAGR of during the
period 2018E-2022E. In future, it is expected
that sale of used cars having age of more than 10
years will reach up to million units in the
year 2022E at a CAGR of during the period
2018E-2022E. Cars having age more than 10 years
will dominate the used car market in future. It
is expected that out of overall used car market,
used cars sold in future during the year 2022E
will have age more than 10 years. Sale of used
cars having age under the bracket (5-10 years) is
expected to reach up to million units during
the year 2022E at a CAGR of during the period
2018E-2022E. Sale of used cars under age bracket
(5-10years) is expected to account share of
the overall used car market in future during the
year 2022E.
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