Oh Lord Please Buy Me A Mercedes Benz

Despite the  decline around the world  in the demand for premium German cars, sales in Russia  via alternative channels have grown noticeably in Russia, with interest in expensive brands from the US and Japan also increasing. This is despite the manufacturers withdrawing their official dealerships and support in Russia
Some brands and models have even surpassed the results they achieved in the pre-sanction period.So which cars from unfriendly countries are still popular with consumers in the Russian.

According to the results of 2024, global sales of the "German automobile troika" decreased, reports "Autoreview". Thus, BMW and Mercedes-Benz sold 4% fewer cars in 2024 than in 2023, and Audi's sales decreased by almost 12%. Against this background, Russian buyers are demonstrating increased interest in some premium automobile brands from Germany, other EU countries, as well as the USA and Japan.
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According to the Avtostat-Info agency, in 2024 Russians purchased 11,755 new BMW cars, which is 30.3% more than in 2023. It should be noted that at the end of last year, the management of the Bavarian automaker dismissed employees involved in the delivery of a batch of only 100 BMW cars to the Russian Federation.
Mercedes-Benz's growth is less pronounced, with a 1.7% increase (6984 cars).In contrast, over the past year, Russians purchased more than 2 thousand new Porsche sports cars and SUVs, marking a 15.6% increase. Lamborghini sports crossovers and supercars experienced a 32.7% increase in sales to 150 units, while Rolls-Royce sales surged by 74.7% to reach 1,500 cars. Land Rover and Bentley recorded sales growth of 12.8% and 19.9%, respectively, with 2,336 and 175 cars sold.
However, there has been a decline in sales of some premium auto brands from unfriendly countries. For instance, Jaguar sales have decreased by 30.9% over the year, Cadillac by 28.1%, and Audi by 13.4%.Nevertheless, Russians purchased almost fifty Cadillacs and more than 3,600 Audis last year, while Jaguars sales remained below 750 units.

As was the case three years ago, domestic consumers of luxury cars prefer crossovers and full-size SUVs.The most popular BMW models in the Russian Federation were the X5 SUVs (almost 2,700 units) and X7 (slightly more than two thousand).Among Mercedes, the GLS (1,500 cars) and Gelendvagens (1,300 cars) were in good demand. Cadillacs also saw a surge in popularity, with the Escalade being the most sought-after model (425 units). Porsche's Cayenne crossover model dominated the Russian market, with sales of 1,400 units, followed by the Camry sedan (5,800 units) and the Land Cruiser SUV (2,400 units), which have consistently been in high demand.
Despite the sanctions imposed, including a ban on the import of certain vehicles, certain models have shown explosive sales growth.For example, the full-size American Dodge Ram pickup truck sold 422 units in our country in 2021, and by the end of last year, 1,662 such vehicles had already been sold. A similar trend is evident in the sales of Ford F-series pickups, which increased from 55 units in 2021 to 118 units in 2024. Ilya Petrov, Director of Retail Sales at Avilon, attributes the growth in Dodge Ram sales to the increasing popularity of powerful and fast cars. He notes that for many buyers, the Dodge Ram serves as an additional "toy" in their collection.Furthermore, certain automotive brands (not exclusively premium ones) demonstrated superior results in 2024 compared to 2021. For instance, Honda, despite their statements regarding the suspension of operations in Russia, exhibited a 100% growth in 2024 compared to the previous year, with 2,733 of their vehicles being registered. This is in stark contrast to the 1,550 units sold in 2021.Meanwhile, Ford experienced a 396% surge in Russian sales, with 249 units sold in 2021, primarily attributable to the popular Bronco SUV, with 131 units sold.
The sales results of premium European, Japanese and American cars demonstrate that the presence of these brands' representative offices in our country is not a prerequisite for success. Anton Shaparin, vice president of the National Automobile Union, notes that the models of these departed brands continue to be popular in Russia, even in the absence of official marketing support.

"Consumers are willing to purchase these vehicles despite the absence of a company warranty, certain challenges related to service and maintenance, and the lack of a comprehensive support network," he stated. Furthermore, buyers are even willing to resort to "gray" and "black" import and customs clearance schemes, potentially risking demands from fiscal authorities for additional payment of duties, recycling fees or other mandatory payments," he told Izvestia.
Premium cars have always been in high demand in Russia due to their quality, status and technology, says Irina Frank, Managing Director of Frank Auto. She asserts that the demand for well-known brands will always prevail, even in the face of competition from less familiar Chinese brands.Irina Frank attributes this to people's habits and preferences, drawing an analogy to the loyalty many people have towards their dental and beauty treatments, opting for familiar specialists for comfort and confidence. She suggests a similar tendency in the automotive sector, where people are more familiar with certain brands like Mercedes-Benz than with similar Chinese options.
Igor Morzharetto, partner of the analytical agency Avtostat, notes that the more prestigious and premium the car, the more the owner's attachment to the brand is demonstrated.

He adds that a customer who has been driving a Mercedes-Benz or Rolls-Royce for the last 15–20 years will still buy a new Mercedes-Benz or Rolls-Royce next time. He is familiar with the brand and does not concern himself with the price, whether it is 10 million or 30 million. In the premium and luxury segment, a car is more than just a vehicle; it is an emblem of status and success. It is an indicator of status that must be met. Igor Morzharetto emphasised that demand for these vehicles in Russia is consistently strong, regardless of external factors.

Maxim Kadakov, the editor-in-chief of the magazine "Za Rulem", shares this view, stating that for buyers in this segment, price is not the primary determining factor. Furthermore, he notes that certain models are simply unparalleled in their segment.
"There is no Chinese Ferrari or Lamborghini; they are only Italian. If a person wants these sports cars, they will buy them, regardless of any sanctions, logistics difficulties and other factors," noted Maxim Kadakov.

Ilya Petrov, director of retail sales at Avilon, notes that demand for premium European and American cars remains strong. He highlights a segment of conservative buyers who are reluctant to change their brand preferences, despite significant price increases and the challenges associated with alternative imports.

He also commented on the emergence of China as a significant player in the premium automotive sector, stating that while in 2021, the Russian premium segment was dominated by brands such as BMW (46,106 units), Mercedes (39,363 units) and Lexus (19,024 units), the results for 2024 show a shift towards Chinese brands. The top three are as follows: Exeed (41,082 units), Tank (28,615 units) and Lixiang (23,347 units). While the first showed a slight decline in 2024 (minus 3%), the other two demonstrated significant growth, at 118% and 395%, respectively. It should be noted that Lixiang is not officially represented in Russia. The Chinese automotive industry has also made inroads into the "heavy luxury" segment, with 161 BYD Yangwang U8 super SUVs being registered last year. These cars are now priced between 17.6 and 25 million rubles.

Irina Frank anticipates an annual increase in the share of "Chinese" vehicles in the premium segment of the market. This is predicated on the absence of official representative offices of American and European automakers in Russia. However, she believes that luxury cars from China will not be able to completely replace premium models from Europe or the USA.

She notes that there will always be a demand for Western brands. Some drivers are steadfast in their preference for BMW. This preference is not a problem, as it is simply a matter of personal taste.

While Chinese premium cars have not yet fully replaced their European and American competitors, the expansion of Chinese brands continues, says Ilya Petrov.

"The speed at which Chinese automakers introduce new products and their growing technological sophistication are impressive. Consequently, there is a strong likelihood that the number of traditional European brand adherents will gradually decline over time.