06.04.2026 / Why are the new low-cost car sales declining and how to stimulate demand

Tatyana Arabadzhi, Director at the marketing agency NAPI, spoke about the current situation in the market of new and used cars in the price range of 1-2 million rubles, the impact of economic factors on sales and measures that can help restore demand for Russian cars.

Cars priced from 1 and 2 million rubles account for about a third of new car sales, of which about 70% are Lada cars. Most of the models of this brand fit into this specified price range. Along with Lada cars, 69 more models of other brands are represented on the new car market. Moreover, used* cars can be purchased within 2 million rubles, 1,300 models are available on the market.

Sales of new Lada cars are declining significantly sharper than the market. Most likely, the majority of car owners who previously chose new Lada cars priced at 1-2 million rubles are switching to buying used cars or completely refusing to purchase cars until better times. Fewer customers prefer to buy a new car offered by another brand at the same price.

Buyers of low-cost segment cars are more strongly influenced by negative economic factors than those preferring more expensive cars: rising car prices, expensive loans, stricter requirements for borrowers from banks, a high percentage of loan refusals (it has been at 80% since the beginning of last year), a reduction in automakers' marketing programs, inflation, decrease in real incomes of the population, etc.

In the current conditions, in order to stimulate demand for new Lada cars, it is not enough to raise the recycling tax for cars imported into Russia, since Lada cars do not compete with them. The established payment system for cars imported into Russia automatically transfers most of the low-cost foreign cars to the price category of over 2 million rubles.

First of all, it is necessary to make prices, credit programs for new Lada cars, and the cost of maintenance and repair more affordable. It is important to continue providing state support for buying the car, possibly mitigate the requirements for borrowers, and offer attractive service programs for warranty cars. In this case, when choosing between a new Lada car and a used foreign car, the buyer will give preference to the Russian brand.

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* cars aged under 20 years