Sharp rise in luxury cars registered in Russia – RBK

The number of luxury cars in Russia increased by 22% last year despite the exodus of Western automakers due to sanctions, business daily RBK reported on Monday, citing analysis of federal tax audit data.

According to research provided by the FinExpertiza consultancy, the “luxury tax” charged on cars with a sticker price of 10 million rubles ($100,000) or more increased by 31% last year to 3.34 billion rubles ($33.5 million).

Individual owners accounted for around 12,800 luxury cars in 2022, while some 7,000 vehicles were registered by enterprises and organizations.

Moscow and its surrounding region accounted for around half (9,800) of luxury vehicle purchases in Russia, followed by St. Petersburg with 2,000. At least 76 Russian regions registered increases in the number of luxury vehicles last year, with the biggest percentage rises recorded in the republics of Kalmykia, Buryatia, and Dagestan, as well as Amur Region.

Data showed that the number of high-end vehicles in Russia has grown year-on-year, with 2022 marking a 250% surge on the pre-Covid pandemic 2019.

“The upward trend couldn’t be reversed either by the coronavirus crisis that broke out in 2020 or by Western sanctions that restricted Russians’ access to the luxury segment in 2022 and led to a sharp price hike,” FinExpertiza analysts said.

Demand for expensive vehicles remains stable in Russia because it is less price-dependent than the mass market, according FinExpertiza president Yelena Trubnikova, as cited by RBK.

The US, the EU, and Japan have banned exports of luxury cars and other goods to Russia in response to Moscow’s military operation in Ukraine. Since March 2022, when the sanctions were imposed, Russian neighbors Georgia, Armenia, Kazakhstan, and Finland have been accused of enabling the re-export of high-end automobiles into the country.

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