Sixth of every ruble loaned by Sberbank for consumer purposes in the first half of the year was utilized for purchasing automobiles.
Residents of the southern regions of Russia and the North Caucasus have shown a growing interest in car purchases, as evidenced by the over 6,000 car loans worth a total of 7.5 billion rubles issued in the region.
Breaking down the figures, Rostov Oblast and Stavropol Krai each accounted for 1,500 car loans, totalling 1.8 billion rubles each. Krasnodar Krai, however, led the way with 2,600 car loans amounting to 3.3 billion rubles.
The demand for car loans is particularly high in Krasnodar Krai, Rostov Oblast, Stavropol Krai, and the Crimean Peninsula, which collectively accounted for 95% of all car loans received by southern residents.
According to Larisa Nikolaevna Bezdelova, Deputy Chairman of Sberbank's Southwest Bank, this surge in demand for car purchases during the spring and summer months is a clear indication of the region's economic vitality.
However, the auto loan market in Russia is facing challenges. Past-due auto loan debt has increased significantly, with overdue amounts rising by 85% over the past year. This increase in delinquency affects the overall market's health.
Furthermore, the high rejection rate for auto loan applications, with 75-80% of applications being denied, indicates a cautious approach by lenders due to increased delinquency and economic strain.
Despite these challenges, there are positive signs for the auto loan market in the region. Government programs for purchasing Russian-produced cars are driving growth, accounting for up to 15% of all auto loans issued in the South.
Joint programs with automakers offering subsidized interest rates, such as LADA, Chery, Geely, Haval, Changan, Moskvich, and many others, are showing strong growth and collectively account for up to 30% of all Southern transactions.
The average loan amount for car loans in southern Russia has increased by 26% over the past year, reaching 1.2 million rubles. This is a significant increase of 323,000 rubles, or 26%, compared to the same period last year.
Analysts at Sber have studied the dynamics of the car loan market in southern Russia and the North Caucasus over the first six months of 2025. Among all consumer loans received at Sber over the past six months, car loans rank in the top 3 by demand, accounting for every sixth ruble in loan volume.
Interestingly, the number of car loan applications increased fastest among men and women under 30 from new Russian regions, the North Caucasus, Kalmykia, Crimea, and Adygea in July and August.
While there are no specific government programs highlighted in the search results that are driving growth in the Southern market for auto loans in Russia as of 2025, the current economic conditions suggest that the auto loan market is a key area of focus for both lenders and borrowers in the region.
One final note: Crimeans have the highest average car loan figure at 1.3 million rubles, while North Ossetia-Alania has the lowest at 910,000 rubles. This variance in loan amounts across regions is an interesting aspect to monitor in the coming months.
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