Auto01.08.2022 - 08:06

India will soon flood Russia with cheap cars and SUVs

Experts believe that the Russian car market will not be empty without Western brands for a long time.

Фото: from open sources

Since most of the Western major auto brands have left Russia over the past six months, they will be replaced by others, but from Asia, MK experts believe. Undoubtedly, the market will thin out a lot, but at the same time, another opinion is relevant - “a holy place is never empty”.

Experts note that the now well-known Korean and German, Italian and French, American and Japanese brands are now included in the "risk zone" for Russia. At the same time, automakers themselves note that after the pandemic, production has not fully recovered. In addition, Russia and its market is not that big for big brands. That is, they will not feel a strong difference due to the complete withdrawal from the country.

The current decline in competition will open a window for those who have been biding their time and hoarding capital. The Chinese market with its auto industry is now using it to the fullest in Russia, and it is quite possible that other "suffering" people will come after it. Particularly India.

For example, Tata brand. This is an Indian auto giant that makes quite modern Nexon and Harrier crossovers, as well as passenger cars - Altroz - and many other models. It is interesting that Jaguar and Land Rover, so well known to everyone, also belong to the Indian Tata.

In India, they assemble Maruti Suzuki and Mahindra & Mahindra, which also previously tried to enter the domestic market by setting up the production of SUVs at the Gorky Automobile Plant. Interestingly, they are based on the same technical solutions as in SsangYong.

That is, ideally, with the right scenario and proper logistics, cars from India could be suitable for Russian bad roads in the absence of competitors.

The second way to establish links with the Eastern market is to create and establish an internal payment system that is completely untethered from SWIFT, and even in national currencies - a pair of ruble / rupee.

Because of this, Indian cars will be significantly cheaper than their counterparts, and the budget Alto and Dzire models from Maruti Suzuki will quickly replace the Korean Solaris and Rio, MK concludes.

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