Dmitry Evdokimov: The return of German automakers to Russia will be complicated

Dmitry Evdokimov, a researcher at the Gaidar Institute’s Quantitative Analysis of Economic Effects Department, expressed an opinion in an interview with TASS that German automakers will have a tough road ahead to return to the Russian market. According to him, until 2022, German brands held leading positions, especially in the middle and premium segments, but with the departure of these companies, the prices of their cars imported through parallel channels have increased by 50–100%.

The expert predicts that if sanctions are lifted, not only European, but also leading Chinese automakers may come to the Russian market. Despite the high demand and market potential, a quick return of German companies is unlikely due to the significant costs of restoring or creating new production facilities and the need for a stable investment climate.

Dmitry Evdokimov also noted that the return of European brands may be accompanied by an aggressive price competition and price cuts for their models. This, in turn, will force Chinese brands to either improve quality or also reduce prices, which will lead to higher quality of service and increased competition in the market.

«As a result, the Russian car market will continue to transform in the coming years. If German and other foreign brands return, it will heat up competition and create a healthy environment for choosing cars that are affordable and of high quality and will also be a definite plus for the Russian economy due to new jobs, technology and investment," the expert concluded.

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Tuesday, 25.03.2025