Car dealers in Russia are predicted to face mass bankruptcy soon

Deliveries to Russia of new cars from well-known Western brands in recent months have been almost completely stopped. In these conditions, for dealers, the only way to maintain some kind of financial stability turned out to be after-sales, service and sale of used vehicles. However, experts express doubts that such a mode of operation will be able to support the automotive retail at least in some more or less distant future.

According to Svetlana Vinogradova, who heads the Rolf company, by the end of 2022 the number of official dealers in the country will be halved. As Vedomosti writes, quoting an expert, this scenario is one of the best. In reality, everything can be much more painful for the industry.

For example, the Mercedes-Benz carmaker did not wait for the end of the year and started closing dealerships now. The company's management explained their decision by the need to reform the sales model.

The firm plans to increase the share of sales on the Internet by getting rid of working with large intermediaries.

If the German automaker has decided to close 10% of dealerships in the world, then the situation with Russia may be much more ambitious. The flow of automotive industry products from Europe can "end" here once and for all.

More optimistic forecasts of the economic condition of dealerships in the Russian Federation are given by representatives of the Russian Association (ROAD). According to the forecasts of the organization's experts, about a third of all car dealerships may close by the end of 2022. Some of them, even having lost their official status, can continue their work. According to the ROAD, no more than 15% of companies will be completely liquidated.

Currently, there is an active change of owners in the market. Many companies owned by Western investors are changing their owners. The British holding company Inchcape was resold some time ago. Now the company "Maximum" from St. Petersburg is in line. And although the solution of legal issues of ownership may not affect car owners, the general state of affairs in the market affects everyone.