Car sales under Anton Alihanov's administration experienced a decrease of over 20%
In the first quarter of 2025, the Russian automobile market has experienced a decline in sales due to a myriad of economic and geopolitical factors. According to recent data, the sale of new cars in the country has decreased significantly by around 27.8% compared to the same period in the previous year [3][5].
Anton Alikhanov, Russia's Minister of Industry and Trade, has attributed this decline primarily to high auto loan interest rates. He mentioned that the Ministry may adapt support measures for the industry to counteract this trend, and efforts will continue to target demand growth [6].
The downward trend in sales is partially attributed to a shift from Western car imports to domestic and Chinese vehicles, although the quality of these vehicles has been a concern for some consumers [2]. Additionally, inflation pressures and financial burdens on households have led to a 25% decrease in new car sales in Q1 2025 compared to the same period in 2024 [2].
Data from Autostat shows that 1.57 million new light vehicles were sold in Russia in 2024, representing a 48.4% increase from the previous year [7]. While there are no specific projections for exact numbers, the current trend suggests a decline in car sales for 2025. If the central bank's key rate continues to rise, Renat Tyuktaev, deputy general director for sales of new cars at "Avilon," predicts between 1.3 to 1.4 million cars will be sold in 2025 [7]. Maxim Sokolov, president of "Avtovaz," also suggests a potential drop in the Russian car market by 21-30%, affecting 1.3-1.4 million cars in 2025 [7].
While the Russian government aims to increase vehicle production, economic challenges and the reluctance of Chinese OEMs to engage in nearshoring complicate these intentions [1].
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The Russian Minister of Industry and Trade, Anton Alikhanov, is considering adapting support measures for the industry due to the observed decline in car sales, which he attributes mainly to high auto loan interest rates within the finance sector. The downward trend in car sales is also influenced by financial burdens on households and inflation pressures, which have caused a 25% decrease in new car sales in Q1 2025 compared to the same period in 2024, affecting the business sector.
