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As the automotive world grapples under supply chain bottlenecks, component shortages, and delayed inventories, Russia’s automotive industry is pilling losses. According to Reuters, new car sales in the eastern European nation have been steadily declining for the past nine months, falling 62.9% in March.
Russia has to face international sanctions after it attacked Ukraine affecting both imports and exports out of the country. Since the biggest country in the world is also a key global exporter of oil and minerals used in EV development—the auto industry has also been suffering.
AEB (Associated European Business) said on Wednesday that Russia's new auto sales amounted to 55,129, which is approximately half the number sold in February. AvtoVaz, Russia’s leading automaker, which develops the Lada, slumped 64% in March sales compared to data from the previous year.
In 2021, AvtoVaz sold 113,698 Vesta Lada vehicles, making a 5.6% growth compared to 107,281 units of the previous year.
AEB estimates Russia’s new car sales for the first quarter of 2022 fell 28.4% to 277,332 units. The institution expected the market to grow by 3.3% in 2022 after experiencing a 4.3% growth in 2021.
Evgeny Suvorov, an economist at CentroCreditBank, said the consistent downturn in sales could shrink new car sales in Russia twice in 2022. According to VTB Capital analysts, the market faces supply and demand issues, and since many brands have stopped operation in the country, the remaining face logistical and production problems.
Apart from being a highly resourceful nation in terms of minerals and metals required for auto development, Russia’s car market was the most promising globally until 2014. Before the Ukrainian invasion, several automakers ran their plants in the country, including Volkswagen, Renault, and Stellantis.
Before the series of sanctions from western nations, Russian car sales stood at 1.67 million units in 2021.
AEB (Associated European Business) said on Wednesday that Russia's new auto sales amounted to 55,129, which is approximately half the number sold in February. AvtoVaz, Russia’s leading automaker, which develops the Lada, slumped 64% in March sales compared to data from the previous year.
In 2021, AvtoVaz sold 113,698 Vesta Lada vehicles, making a 5.6% growth compared to 107,281 units of the previous year.
AEB estimates Russia’s new car sales for the first quarter of 2022 fell 28.4% to 277,332 units. The institution expected the market to grow by 3.3% in 2022 after experiencing a 4.3% growth in 2021.
Evgeny Suvorov, an economist at CentroCreditBank, said the consistent downturn in sales could shrink new car sales in Russia twice in 2022. According to VTB Capital analysts, the market faces supply and demand issues, and since many brands have stopped operation in the country, the remaining face logistical and production problems.
Apart from being a highly resourceful nation in terms of minerals and metals required for auto development, Russia’s car market was the most promising globally until 2014. Before the Ukrainian invasion, several automakers ran their plants in the country, including Volkswagen, Renault, and Stellantis.
Before the series of sanctions from western nations, Russian car sales stood at 1.67 million units in 2021.
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