Finance
Russian car sales fall 15.6% in 2025 after two years of recovery
Published by Global Banking and Finance Review
Posted on January 13, 2026
Russian Passenger Car Sales Decline 15.6% in 2025 After Recovery
Overview of Russian Car Sales
MOSCOW, Jan 13 (Reuters) - Sales of new passenger cars in Russia dropped 15.6% in 2025, analytical agency Autostat said on Tuesday, citing data from consulting firm PPK.
Russia's car market plunged in 2022 to Soviet lows after Western automakers left the market due to the war in Ukraine. Sales recovered in 2023 and 2024, but the growth stalled last year as higher interest rates, market saturation and an increase in the scrappage fee hit the market.
In total, 1.326 million new passenger cars were sold in Russia last year, down from 1.571 in 2024, according to Autostat data.
Sales Trends in 2025
Sales rebounded in the last months of 2025, increasing 10.6% year on year in December after a 5% growth in November, as buyers rushed to purchase a car ahead of scrappage fee hikes in December and January.
Market Predictions for 2026
The market is expected to weaken at the start of next year due to price hikes, the Association of European Businesses (AEB) said in December.
(Reporting by Gleb Stolyarov; Editing by Guy Faulconbridge)
Frequently Asked Questions about Russian car sales fall 15.6% in 2025 after two years of recovery
1What is market saturation?
Market saturation occurs when a product has become widely available, leading to reduced demand as most potential customers already own the product.
2What is a scrappage fee?
A scrappage fee is a charge imposed when a vehicle is taken off the road, often incentivizing owners to replace older vehicles with newer, more efficient models.
3What are interest rates?
Interest rates are the cost of borrowing money, expressed as a percentage of the total loan amount, influencing consumer spending and investment.
4What is economic growth?
Economic growth refers to an increase in the production of goods and services in an economy over a period, often measured by GDP.
5What is consumer perception?
Consumer perception is how individuals view and interpret a brand or product based on their experiences, beliefs, and marketing.
