Russia's Car Sales Plunges 27 Percent in First Half of 2025

2025-07-03 09:02:37

(MENAFN) New car sales in Russia reached 546,000 during the first half of 2025, reflecting a 27% drop compared to the same period last year, according to a report issued Thursday by the country's Ministry of Industry and Trade.

The month of June alone saw a sharp 29% drop in new car sales compared to the same period last year, the statement noted.

The Association of European Businesses (AEB), based in Russia, forecasts a further 24% decrease in car sales for the year, predicting a total of 1.25 million units sold.

Anton Alikhanov, the Minister of Industry and Trade, acknowledged on Wednesday that Russia's automotive sector is enduring a challenging period, exacerbated by high interest rates.

The onset of the war in Ukraine in 2022 led to the mass exit of Western firms from Russia, severely impacting the automotive market. As Western companies, previously dominant in the Russian car market, withdrew, sales plummeted.

However, Russia's automotive market has shown some signs of recovery, driven by increased imports of Chinese cars and ramped-up production from domestic manufacturers.

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