Russian Car Sales Slump Amid Market Challenges

Sales of new passenger cars in Russia dropped 15.6% in 2025 due to high interest rates, market saturation, and increased scrappage fees. Despite a rebound at the end of the year, with sales increasing in December, the market faces further challenges as prices are expected to rise.

Sales of new passenger cars in Russia experienced a 15.6% decline in 2025, according to the analytical agency Autostat, with data sourced from consulting firm PPK.

The Russian car market, which saw a dramatic drop to Soviet-era levels in 2022 following Western automakers' exit due to the war in Ukraine, had shown signs of recovery in the years 2023 and 2024. However, the market's growth stalled last year, influenced by factors such as higher interest rates, market saturation, and an increased scrappage fee.

Autostat data reports a total of 1.326 million new passenger cars sold in Russia over the past year, a decline from 1.571 million in 2024. Nevertheless, sales rebounded during the final months of 2025, showing a 10.6% year-on-year increase in December after a 5% rise in November. Buyers rushed to secure purchases ahead of the impending scrappage fee hikes in December and January. Market prognosis from the Association of European Businesses (AEB) suggests a potential downturn at the beginning of the next year due to anticipated price hikes.

(With inputs from agencies.)