Car prices in Russia are among the highest in the world.

The average price of a new passenger car in Russia has increased by 46% during the four years of war, from 2.4 million to 3.5 million rubles, and, given the strong ruble, has exceeded $45,000, according to Sergey Tselikov, CEO of the analytical agency Avtostat.

According to him, this ranks fifth among the largest auto markets – after Canada ($62,000), the UK ($61,000), the US (52,000), and Israel ($50,000). Cars in Russia are becoming some of the most expensive in the world, Tselikov concludes.

Adjusting for consumer preferences in different countries, Russia likely ranks even higher in this ranking. In Canada and the US, high average prices are due to the fact that more than half of new passenger cars sold there are fairly expensive large SUVs and pickups, while in the UK, the premium segment has a significant share, Tselikov explains. In Russia, Lada remains the most popular brand, producing primarily small, mass-market B- and C-segment models.

The situation is similar in Japan and India, where the share of inexpensive compact cars is very high. However, these countries rank at the bottom of the list, with average car prices two and a quarter times lower than in Russia: $22,400 in Japan and $11,000 in India.

Cars were also cheaper in Germany than in Russia, with an average weighted price of $40,000. They are even cheaper in Australia ($35,000), South Korea ($30,000), and China ($22,500).

Russia is logically compared to China: in both countries, buyers favor crossovers, and Chinese brands account for almost half of the new passenger cars sold on the Russian market (Lada sales outside of Russia are small). Although overall sales in Russia are skewed toward relatively budget models, the average price of a car in China is half the price.

For example, the 2026 Geely Monjaro crossover costs 191,100 yuan (2.1 million rubles) in China. In Russia, its price starts at 3.99 million rubles with a special offer, and the full price is 4.5 million rubles. Meanwhile, the BMW X3 30 xDrive M Sport Pro, assembled in China, costs 320,000 yuan (3.5 million rubles) there. It can be shipped to Russia; an unofficial importer says the price will be 6.7 million rubles. In the US, the same model costs $51,300 (3.9 million rubles), but in a more basic configuration.

Chinese authorities supported automakers with subsidies and grants, and intense competition forced them to lower prices, Tselikov notes. According to GlobalData, average passenger car prices in China declined from January 2023 (from $26,900) to February 2025 (from $21,300). Prices then resumed rising, but remain lower than three years ago.

In Russia, things are different, and the strong ruble doesn't explain the enormous dollar prices. Tselikov believes this is due to the government's tariff policy: he calculated that the price of a car, both imported and semi-assembled, is twice its price on the domestic market.

In this respect, Russia is similar to Israel, which ranks one line above, where the high cost of cars is explained by a high tax on their purchase – 83% of the cost (50% for repatriates).

The commercial recycling fee for foreign cars has increased by at least 2.5 times since 2024, from 300,000 to over 800,000 rubles, and by 3-4 times in many categories. The preferential recycling fee is gradually being phased out, and the tariff and tax burden on businesses is increasing. It's inevitable that cars won't become more expensive, notes an employee of a large dealership.

This significant price increase has led to Russians buying fewer new cars and trying to extend the life of their existing ones. According to Avtostat, 1.3 million new passenger cars were sold last year, 16% fewer than in 2024.

source: The Moscow Times https://archive.is/cVu8M