Russia’s Auto Sector Suffers Amid Sanctions

(MENAFN) Russia’s automobile and truck sector is undergoing a significant upheaval due to elevated interest rates, comprehensive Western sanctions, and intensifying rivalry from Chinese manufacturers, all of which have transformed the marketplace.

Before the conflict in Ukraine, brands such as Toyota, BMW, Skoda, and Audi were the dominant players in Russian vehicle sales.

However, Chinese automakers like Chery, Geely, and Voyah have now taken over their positions, causing a reduction in both imports and overall sales.

Data gathered from Russia’s Industry and Trade Ministry alongside the local analytics firm Avtostat reveals that new car purchases dropped by 26% in the initial seven months of 2025, reaching a total of 742,000 units.

Vehicle imports during the first half of the year plunged by 63% to 149,300 units, with Chinese brands representing 77% of that volume.

Following China were Kyrgyzstan at 8% and Belarus at 4.7%.

Western car manufacturers, previously dominant in the market, withdrew following Russia’s invasion of Ukraine in February 2022.

Renault transferred its stake in Avtovaz and its Moscow manufacturing plant to the government for a symbolic one ruble, with the facility now producing Moskvich cars.

Nissan also handed over its assets, including the factory in St. Petersburg, to state control, where Lada vehicles are currently manufactured.

Mercedes, Volkswagen, and Toyota ceased production as well, with some factories now being considered for collaborative ventures with Chinese enterprises.

In the absence of Western brands, Chinese manufacturers swiftly moved in to fill the void.

By June, Lada was the top-selling brand, followed by Chinese makes such as Haval, Chery, Changan, Geely, Jetour, and GAC.

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