Moscow Auto Show Highlights Growth of Russian Car Market

Enthusiasts will check out pictures and stories from the Moscow International Auto Salon to catch glimpses of models we’ll eventually see here. Lexus, Audi and BMW are all debuting new models in Moscow that will eventually reach the United States. The other story to be found in Moscow, though, is the rapid expansion of the Russian car market.

Spurred by an explosion in oil wealth, many Russians are quickly entering the middle class, and those who have arrived are looking to upgrade their rides. With incomes growing at 10% a year over the past decade, Russians have begun purchasing more expensive foreign cars. The country will overtake Germany this year as Europe’s largest car market.

This gives the Moscow show a degree of clout, and perhaps it’s no coincidence that BMW has chosen to debut its heavily armored X5 Security SUV there, as some neighborhoods in Moscow have not yet become the safest places to take a Sunday drive with the family. We also hear it’s tough to be an oligarch these days.

Other notable vehicles at the show include the Volkswagen Tiguan and the Mazda Kazamai concept.

Despite 46% growth this past year — with no signs of slowing — questions remain about the overall picture of Russia as a dependable market, partly due to the fact that most of its wealth is based on the rising price of oil and partly because of its recent invasion of Georgia.

Moscow Car Show Goes Upmarket as Russians Get Rich (Reuters)