Increase in Passenger Car Sales in Russia

(Reuters) – Sales of new passenger cars in Russia increased by 47% year on year to 1.55 million units in 2024, according to reports from Russian news agencies citing data from the industry and trade ministry.

Projections for 2025

New sales in 2025 are expected to drop by around 10% to 1.43 million units. This decline is attributed to high inflation and scrappage fees raising prices, as stated by Sergei Tselikov, head of the Russian analytical agency Autostat, in December.

Impact of Geopolitical Events

Moscow’s invasion of Ukraine in February 2022 significantly reshaped Russia’s car market. With Western car manufacturers pulling out of the country, Chinese companies have stepped in to fill the production void. Although sales plummeted in 2022, they have been steadily recovering since then.