Russian citizens spent $29.1 billion on new cars in 2006, which exceeds the figures for a year earlier by 54.1%. Given the import of second-hand foreign cars, the aggregate capacity of the market reached $24 billion.

A greater range of auto loan offers was one of the key factors responsible for such an impressive increase in car sales last year. Russian banks issued some $7.5 to $8 billion worth of loans in 2006, which comes to 40% of all new cars bought in the country, whereas the figure only amounted to $4 to $4.5 in 2005. Provided this trend is continued, every other car sold in Russia will be bought on credit this year.

The auto loan portfolio of Russian banks was estimated at $10 billion at the beginning of 2007, with the share of cars bought on credit coming to 35% to 40%. This market segment is going to be developing very rapidly, says the marketing report referred to as Developmental Prospects of Russian Car Market in 2007-2010 that has been drawn up by Automobile Statistics at the end of December 2006.