No One Is Buying New Cars in Russia

New car sales in Russia are plummeting, as reported by the Association of European Businesses (AEB). March 2025 saw a drastic 45 percent decrease in sales compared to the same period last year, with only 83,000 vehicles sold in the country. Sales for the quarter have also dropped by 26 percent, totaling 254,000 units.

This decline marks Russia’s third-largest sales contraction in the past decade, according to the AEB, a lobbying group representing foreign investors in the country. The situation is concerning, with the association’s chairman of the Automobile Manufacturers Committee, Alexey Kalitsev, warning that the industry may face a crisis requiring immediate state support if the current trend persists.

Buyers had hoped for the return of previously departed companies to the Russian market, but their absence has only increased pent-up demand, potentially leading to future growth. However, if the downward trend continues, the industry’s survival is at stake.

Following Russia’s invasion of Ukraine, several global automakers, including Ford, BMW, Lamborghini, Toyota, and Mercedes-Benz, have exited or scaled back operations in Russia. Sanctions imposed on Russia have further strained the domestic car industry, exacerbating financial challenges for these companies.