Sales of automobiles in Russia registered a 10-year low in a disappointing antirecord.
Decrease in New Car Sales Continues in Russia Amid Economic Challenges
New car sales in Russia declined by 10.5% in the first two months of 2025, amounting to 193,900 units compared to the same period in 2024. The Ministry of Industry and Trade reported that car sales in February dropped by 25% year-on-year to 77,300 units, while light commercial vehicles (LCV) saw a decrease of 22% to 8,000 units. The overall decrease in February was 27%, with a total of 91,300 units sold.
The Association of European Businesses (AEB) attributes this decline to an increase in the recycling fee, high credit costs, reduced availability, changes in the tax system, and falling demand. However, the organization remains optimistic about market stabilization in the second half of the year due to state support for demand.
The decline in sales is largely influenced by economic challenges, including inflation and financial burdens on households, making car purchases less affordable. Despite state-sponsored loans and discounts, these are often overshadowed by more attractive bank deposit offers. In addition, the market has seen a decline since April 2025, reflecting broader economic instability.
Some brands, such as Belgee and Solaris, have shown positive growth, indicating potential for domestic and foreign collaborations. State support, increased domestic production, and localization efforts could help stabilize the market, as well as wide-ranging offers and discounts provided by market players.
However, sustained growth is difficult without addressing broader economic pressures and sanctions. While there is hope for market stabilization, the overall trend remains negative, with a continued decline in new car sales in Russia.
- The economic challenges in Russia, such as inflation and financial burdens on households, have contributed to a decrease in lifestyle choices, including the purchase of luxury goods like cars.
- Despite some domestic brands like Belgee and Solaris showing growth, the overall trend in the finance sector, particularly industry-related like car industry, remains negative due to the continued decreases in new car sales amidst sustained economic challenges.
