record low! Hardly any new cars are sold in Russia

Russian President Putin is concerned and calls the situation on the domestic car market “not easy”. It’s your own fault, because the war in Ukraine and the subsequent sanctions against Russia have pushed the number of new car sales to an all-time low.

Ten years ago, about 3 million new cars were sold annually in Russia. Two years later, in 2014, Putin decided to invade Crimea. Due to Western sanctions – and later the global Corona crisis – the market shrank to 1.6 million vehicles in 2021.

Car market Russia under 1 million vehicles

For this year, Maxim Sokolov, director of Avtovaz, Lada’s parent company, predicts a dramatic decline. “It’s a lot if we get stuck at 650,000 to 700,000 in December,” he told Reuters. And that means Russian car sales will drop below 1 million for the first time.

Foreign manufacturers have withdrawn

Since Russia started the war in Ukraine, all foreign automakers have pulled out. In addition, it has become difficult for private labels to maintain production because Western sanctions make it difficult to obtain sufficient parts. Lada is now forced to build new cars without airbags and ABS.

Putin wants nobody to take advantage of the shortage

Russia’s economy is in the doldrums. Consumers have to spend less, but prices are rising fast. Putin now wants the competition authority to keep an eye on car prices. He doesn’t want companies to take advantage of scarcity. Avtovaz CEO Sokolov is not optimistic. “Never before have we faced such a great challenge.”