Car sales in Russia have experienced a significant decline, surpassing 25%.
New Car Sales Plummet in Russian Market
Sales of passenger cars in Russia during the initial five months of 2025 took a significant hit, with a staggering 26% decrease compared to the same period the previous year, according to the Russian Ministry of Industry and Trade.
The market for new vehicles stood at 437,099 units, a decline of 26% when compared to the same period in 2024. Interestingly, the total market for new vehicles and vehicles produced domestically also witnessed a drop — down by 28% and 10% year-on-year, respectively.
It's not just the passenger car market that's struggling; apartment sales under share participation agreements have also seen a 20% dip over the past year, as reported by "Live Kuban". To stay updated on the latest news, subscribe to our Telegram channel: https://t.me/live_kuban.
The causes behind this slump in car sales are manifold. The continued negative trends align with monthly data, with May sales diving 28.3% year-on-year. Several top automobile brands suffered losses, such as Geely experiencing a 49.3% decrease in sales during the same timeframe. Meanwhile, only a handful of brands, such as Solaris, managed to buck the trend and display growth.
Economic and regulatory pressures have also played a part in the decline, with the Russian government tightening trade policies and increasing tariffs, particularly impacting Chinese car imports. Exports from China to Russia plummeted 44% year-on-year in Q1 2025, following a sharp increase in the preceding period. Seasonality is another influencing factor, with sales typically dwindling after the spring season.
Regarding apartment sales under share participation agreements, current sources haven't provided any data or trends for the January–May 2025 period. Keep in touch with us for more updates on this front.
Key Points:
- New car sales in Russia declined by 26% during Jan-May 2025.
- The major contributing factors were market contraction, poor brand performance, economic pressures, and seasonality.
- Apartment sales under share participation agreements saw a 20% decrease, as previously reported by "Live Kuban".
The downturn in the automotive industry extended to the finance sector, with loans for car purchases also declining by 26% during the initial five months of 2025, mirroring the drop in new car sales. Additionally, the transportation industry felt the rippot Effect, as the decline in new car sales could potentially impact logistics and delivery services, given the role of vehicles in the distribution of goods.
