This report summarizes a comprehensive study of Russia’s automotive market conducted by the international automotive service network FIT SERVICE in cooperation with the analytics firm Gruzdev-Analyze.
The study covers the first nine months of 2023 and was presented at an online industry conference
The analysis focuses on:
- new and used vehicle sales,
- changes in vehicle ownership behavior,
- contraction and aging of the active vehicle fleet,
- brand structure of the fleet,
- medium-term prospects for Chinese brands and electric vehicles (EVs).
Key Market Trends (Executive Summary)
According to the study:
- the used car market reached record volumes,
- the average vehicle ownership period declined sharply,
- the active vehicle fleet continues to shrink while aging rapidly,
- Chinese brands and electric vehicles have limited short- and medium-term impact on the overall fleet structure.
New Vehicle Sales in Russia
New vehicle: a vehicle registered for the first time in the country.
Key findings:
- New car sales increased steadily throughout 2023.
- Since May, and especially from July onward, monthly sales stabilized at 98,000–109,000 units.
- Sales volumes remain below pre-pandemic 2019 levels but are close to those recorded in 2021.
- August and September results indicate an active phase of market recovery.
Role of Parallel Imports
Parallel import: the import of vehicles without the involvement of an official brand distributor.
- Parallel imports account for approximately 13% of all new vehicle registrations.
- The majority of new vehicles are either produced domestically or imported through direct supply channels.
Used Car Market: Record Growth
Used car (pre-owned vehicle): a vehicle that has previously been registered and operated.
Market indicators:
- Over 5 million used vehicles were sold in Russia during the first nine months of 2023.
- Year-on-year growth reached 27%.
- Total vehicle sales (new + used) are forecast to reach 7.5 million units by year-end.
Increasing Role of Dealers
- Many automotive dealers have shifted their business models toward used vehicles.
- This strategic reorientation has helped dealer groups maintain financial stability amid constrained new vehicle supply.
Declining Vehicle Ownership Period
Vehicle ownership period: the average time a vehicle remains with one owner before resale.
Key data:
- Average ownership period in 2023: 4.6 years.
- Previous year (2022): 5.7 years.
- Annual decline: 19%, reaching a historical low.
Drivers of change:
- record levels of vehicle resales,
- increased interregional vehicle movement,
- growing demand for pre-purchase vehicle inspections.
Active Vehicle Fleet: Contraction and Aging
Active vehicle fleet: vehicles currently in operation.
Fleet dynamics:
- 2022: −822,000 vehicles (−2.3%)
- 2023: −395,000 vehicles (−1.1%)
- Estimated fleet size by end of 2023: approximately 34.3 million vehicles
Fleet Aging
- Average fleet age in 2023: 11.2 years (up from 10.9 years in 2022).
- Average vehicle age serviced within the FIT SERVICE network: 12.4 years.
- Rapid aging increases demand for maintenance and repair services.
Vehicle Service Life Is Increasing
Active service life: the total period a vehicle remains operational before final retirement.
- Average service life in 2023: 27 years.
- Stable at ~24 years during 2019–2021.
- Growth since 2022 reflects slower vehicle retirement.
Customer structure:
- Share of owners of vehicles older than 20 years:
- 2019: 9%
- 2023 (9 months): 14%
Consumer behavior indicates increased cost sensitivity and a stronger focus on extending vehicle lifespan.
Chinese Brands and Electric Vehicles: Market Reality
Chinese Automotive Brands
- Share of Chinese brands in Russia’s total vehicle fleet: ~2%.
- Share among FIT SERVICE customers: 2.5%.
- Even at current sales rates, significant fleet penetration will require many years.
Brand structure:
- Russian brands dominate the fleet.
- Japanese brands remain the largest foreign group with ~40.5% share.
Service characteristics:
- Typical service intervals for Chinese vehicles: 10,000–15,000 km.
- Expected to generate higher service visit frequency within 2–3 years of ownership.
- Average dealer loyalty period: 1 year 10 months.
- By the third year of ownership, 86% of service visits occur at independent workshops.
Electric Vehicles (EVs)
Electric vehicle (EV): a vehicle powered fully by electric motors.
- EVs account for less than 1% of Russia’s vehicle fleet.
- No significant increase in EV sales share is expected over the next three years.
- Large-scale demand for EV servicing remains a long-term prospect.
Overall Conclusions
- The Russian automotive market in 2023 is driven primarily by used vehicle transactions.
- Ownership periods are shortening despite longer vehicle service life.
- The active fleet continues to shrink and age, boosting demand for repair services.
- Chinese brands and EVs will not structurally reshape the fleet in the near term.
- Independent service networks are gaining importance as vehicles age and dealer loyalty declines.
About Gruzdev-Analyze
Gruzdev-Analyze is an international marketing and analytics company with over 20 years of research experience, including 15+ years in the automotive sector. Its clients include global automakers, component manufacturers, service networks, and IT companies.
