Vehicle sales are picking up (modestly) in Ukraine and Russia
- The automotive market in Russia and Ukraine was down slightly in January 2022 compared to January 2021 (-4% in Russia, -7% in Ukraine). The invasion of Ukraine by Russia on February 24, 2022 immediately resulted in a much greater fall in the automotive market in Ukraine, noticeable from February 2022 (-16%) while the drop in new car sales in Russia was of the same order as in January (-5%).
- The fall of the two markets was very brutal from March 2022 (-68% in Russia and -94% in Ukraine compared to March 2021), reflecting what generally happens in times of war. In the case of Russia, it is rather the cessation of production of most car factories in the country as well as imports that created this significant drop in the market.
- In April 2022, the fall in the market in Ukraine stabilized at -88% compared to April 2021, while in Russia it worsened (-80%).
- In May 2022, there is a slight improvement in both markets, since the market decline is only 70% in Ukraine compared to May 2021, and in Russia the market decline is only 74% compared to May 2021.
- Admittedly, on the Russian and Ukrainian markets, the fall in the markets remains very significant, but the improvement in the figures in May 2022 could suggest that the situation will improve in the coming months. However, we must remain cautious because Russia is still suffering from the closure of local factories and the cessation of European imports. But Russia could relaunch the activity of these factories on its own initiative and switch to imports from China.
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