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Getting up to speed - Car loan market overview - Ernst & Young - Global

Getting up to speed

Car loan market overview

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Passenger car credit sales in Russia, financial value and share of total value


Passenger car credit sales in Russia, financial value and share of total value

Source: AEB, Avtostat, CBR, Price N, RBC, ROAD, Ernst & Young estimates

Passenger car credit sales in Russia, millions of units and share of total sales


Passenger car credit sales in Russia, millions of units and share of total sales

Source: AEB, Avtostat, CBR, Price N, RBC, ROAD, Ernst & Young estimates


Passenger car credit sales to grow by 58% in 2010 over 2009, thanks to the state program for subsidizing interest rates and several major trends.

Passenger car credit sales in Russia,
millions of units and share of total sales

Passenger car credit sales in Russia, millions of units and share of total sales

These major trends characterized the car loan market in 2010:

  • Decrease in interest rates and loosening of credit criteria due to falling funding costs
  • Recovery of confidence on capital markets
  • Improved liquidity position of banks

Total number of passenger cars sold on credit in 2010 amounted to 588,000 units, accounting for 31% of the total light vehicle market in volume terms. However, it is only half the pre-crisis volumes, when every second passenger car was sold on credit.

Passenger car credit sales in Russia,
financial value and share of total value

Passenger car credit sales in Russia, financial value and share of total value

The car loan market is highly concentrated: the market share of top six banks exceeded 70% of the total value of car loans granted in 2010.Furthermore, the major global car producers expanded their presence in the Russian car loan market in 2010 by setting up their own banks and finance units. These offered lower interest rates on car loans compared to other credit institutions.

Some of these banks set up by car manufacturers have considerably extended their loan portfolios.

As of the end of 2010, while over 100 banks were accredited to grant loans under the car lending program, more than 90% of loans granted under the program were provided by 8 banks.

In particular, approximately a third of the car loans were granted by Sberbank.


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