New passenger car sales fell by 11.4% in Russia year on year in July, new data has revealed. Autostat data also showed, however, a recovery from the 27.6% slump in June. Between January and July, sales dipped by 23.9% compared to a year ago, at 651,029 units. Vehicle producers in the country, such as Avtovaz and truck manufacturer Kamaz, have suggested that the blame for the sales lies with high borrowing costs for consumers and producers, and short-sighted import policies.
The Russian state news service TASS reported that sales of new automobiles, including passenger cars, light commercial vehicles (LCVs), trucks and buses, in Russia declined by 26% year-on-year between January and July, totalling 742,100 units, according to the Russian Ministry of Industry and Trade. The domestic segment of the new vehicle market contracted by 8% over the same period, to 408,200 units, data suggested, as showing that the passenger car market fell by 24% to 646,700 units, the LCV segment declined by 19% to 58,000 units, truck sales plummeted by 55% to 31,400 units and bus sales dropped by 52% to 5,900 units.
In July alone, sales of new vehicles fell by 15% year-on-year to 134,600 units, figures revealed.
But it was noted that this represents a 33% increase compared to the number of vehicles sold in June of this year.
Importers have large stock of cars and are looking to offset them by offering discounts and better loan terms, Autostat Executive Director Sergei Udalov said on Tuesday, according to Reuters.
In addition, sales of new passenger cars and light commercial vehicles (LCV) in Russia reportedly fell by 29% in June year-on-year to 92,600 units.
The Association of European Businesses (AEB) Automobile Manufacturers’ Committee downgraded its outlook on Russia’s market of passenger cars and LCVs for 2025 to 1.25million units, TASS reported, which is 24% lower than in 2024.
At the beginning of the year, the AEB expected sales at 1.4million units.
“Looking ahead, we can expect a market recovery – provided there is government support,” Chairman of the Automobile Manufacturers Committee, Alexey Kalitsev, was quoted as saying at the time.
It comes amid an “ongoing effort” from the Kremilin to “posture economic stability to its foreign and domestic audiences and to discourage the West from levying additional sanctions against Russia by claiming that sanctions have no impact on the Russian economy”.
The Institute for the Study of War (ISW) adds that Putin’s officials are “falsely portraying the Russian economy as strong and resilient”.