New light truck sales plummeted by a staggering 28% within the Russian market
A Slump in New Car Sales in Russia's Market
The sales of new passenger and light commercial vehicles (LCVs) in Russia took a nose dive in May 2025, plummeting by a staggering 27.5% from the previous year, amounting to 98,348 units, according to the Russian Ministry of Industry and Trade.
From the start of the year until May, passenger car sales slid by 26% to 437,100 units, while LCV sales dwindled by 17% to 41,700 units.
In the span of May 2025, 90,709 passenger cars were sold, marking a 28% drop from the same period the previous year, and an 11% decrease from April. LCV sales, on the other hand, totaled 7,640 units, a 21% decrease year-on-year and a 22% decrease from the month before.
The Ministry of Industry and Trade acknowledged that the decline in sales volumes in May, as compared to April, is often influenced by seasonality. Nevertheless, they pointed out that the rate of decline for domestic models remains lower than that of foreign cars.
Roughly 44,800 imported cars were sold in May, signifying a 43% drop from the same month in 2024, while 57,600 domestically-made cars were sold, a 15% decrease from the previous year.
The Ministry of Industry and Trade reported that the share of Russian-made vehicles in the January-May 2025 period increased by 11 percentage points compared to the same period the year before.
Moscow, Natalia Petrova
© 2025, RIA "Novy Day"
The steep decline in new car sales within Russia's market can be traced back to multiple factors. First and foremost, economic instability has impacted consumer confidence, with potential buyers keeping their wallets tight or investing their savings in U.S. dollars due to predictions of ruble depreciation, making substantial purchases such as automobiles less enticing[1].
Contrary to the Industry and Trade Ministry's assertion that seasonality is to blame for the drop, auto dealers are skeptical, suggesting that May tends to bring about greater demand than April, hinting at a more structural rather than seasonal cause[1][5].
The sales slide in May 2025 is part of a broader trend, with passenger car sales tumbling by 28% from May 2024, signifying that this downward trend is not limited to a single month[1][5]. Lastly, market fatigue and government policies have also contributed to the continued year-on-year decline[3]. The Association of European Businesses (AEB) observed that market fatigue is a significant factor, but they remain optimistic that government initiatives, such as expanding the concessional lending program for families with two or more children, may boost the market in the near future[3].
The steep decline in new car sales within Russia's market is not solely attributable to seasonality, as industry experts and auto dealers suggest a more structural cause, given that May traditionally brings about greater demand[1][5]. The current economic instability has impacted consumer confidence, leading potential buyers to either limit their spending or invest in U.S. dollars due to predictions of ruble depreciation, thus affecting the finance sector and business decisions related to automobile purchases[1].
