Russian car market has been falling again since November 2024
- During the first five months of 2025, the Russian car market continues to sink into a deep crisis , marked by a drop in sales observed since November 2024 and a growing dominance of Chinese brands. Only 521,652 cars were registered in Russia between the beginning of January and the end of June 2025 (including 307,000 Chinese cars), which represents an annual rate of just over one million units over the whole year compared to 1.55 million in 2024 and 1.05 million in 2023. In conclusion, the Russian market has missed its restart after a very bad year in 2022 (0.7 million units) due to the outbreak of the Russo-Ukrainian war and a year 2024 full of promise. The Russian market had experienced much better years between 2017 and 2021, hovering around 1.6/1.8 million units per year during this period.
- Russia has increased its military spending significantly, thus reducing the resources dedicated to civilian development. Furthermore, the introduction of a new recycling tax by the Russian government on automobile purchases has added to high inflation and rising interest rates, which are slowing down purchases. Many customers are waiting for the return of foreign brands, which is further slowing sales. It is in this gloomy context that Chinese carmakers are capturing the largest part of the Russian market, with 59% of sales in the first six months of 2025. Four Chinese groups ( Chery , Great Wall, Geely , Changan) alone hold 51% of the Russian market. BYD is not among them because the electrification of the Russian market is still in its infancy.
- In summary, the Russian market is in a downward spiral, torn between its military spending and economic and geopolitical uncertainties, but it does not appear that economic sanctions have played a major role in this decline.