Finance
AEB lobby group forecasts modest 2.5% growth for Russia's car market
Published by Global Banking and Finance Review
Posted on January 13, 2026
AEB lobby group forecasts modest 2.5% growth for Russia's car market
Overview of Russia's Car Market Growth
MOSCOW, Jan 13 (Reuters) - Sales of new cars in Russia are expected to rise by 2.5% to 1.4 million units in 2026, the Association of European Businesses (AEB) said on Tuesday.
Factors Influencing Market Growth
The weak growth forecast reflects increased valued-add tax (VAT) rates and scrappage fees, and the high level of interest rates, the lobby group said.
Recent Sales Trends
Sales of new passenger and light commercial vehicles dropped 17% last year, AEB said. Russian analytical agency Autostat, which covers only passenger car sales, said the market fell 15.6% in 2025.
Industry Challenges
"The significant decline in the market reflects the difficult situation in the industry, which is experiencing both external pressure in the form of sanctions restrictions and changes in internal regulation," said Alexey Kalitsev, chairman of AEB's Automobile Manufacturers Committee.
(Reporting by Gleb Stolyarov; Editing by Mark Trevelyan)
Frequently Asked Questions about AEB lobby group forecasts modest 2.5% growth for Russia's car market
1What is the automotive industry?
The automotive industry encompasses all companies and activities involved in the manufacturing, design, marketing, and selling of motor vehicles.
2What are interest rates?
Interest rates are the cost of borrowing money, expressed as a percentage of the total amount borrowed, typically calculated on an annual basis.
3What is economic growth?
Economic growth refers to the increase in the production of goods and services in an economy over a period of time, often measured by GDP.
4What are sales trends?
Sales trends indicate the patterns and changes in consumer purchasing behavior over time, reflecting the performance of specific products or markets.
5What are market challenges?
Market challenges are obstacles that businesses face in their industry, which can include competition, regulatory changes, and economic conditions.
