The increase in the key rate has a serious impact on auto retail, affecting the cost of loans for both buyers and the business itself. Igor Chikin, Executive Director of the Association "Russian Automobile Dealers" (ROAD), emphasized that high debt burden in this industry makes companies vulnerable to economic changes, which may lead to loss of profitability, staff reductions, and even bankruptcies. This was reported by the Avtostat agency.
Andrey Ignatenko, Director of the Insurance and Financial Services Department at AG Avilon, added that the current situation with the key rate reduces the profitability of the dealer business to almost zero. This is especially acute for the sale of Chinese cars, where the margin is initially extremely low. According to Ignatenko, if the rate does not decrease in the coming months, companies with a high debt burden will be on the verge of bankruptcy. The future of the business will largely depend on sales volumes, which are now under threat.
Roman Slutsky, CEO of Alarm-Motors Group, predicts that the profitability of car dealers in the next four to six months will reach the lowest level for the entire observation period. If the current situation persists, a wave of bankruptcies may begin as early as the summer of 2025.
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