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Russia’s Car Market Slumps in 2025 as Industry Projects Tepid 2026 Rebound

AEB now expects only 2.5% growth in 2026 to about 1.4 million vehicles.

Hyundai cars are seen at a customs terminal on the outskirts of Saint Petersburg, Russia June 1, 2022. REUTERS/Anton Vaganov/File Photo
A person inspects a Lada car produced by the Russian automobile maker AvtoVAZ, displayed for sale at a dealership in Saint Petersburg, Russia, July 22, 2025. REUTERS/Anton Vaganov/File Photo

Overview

  • Autostat reports passenger car sales fell 15.6% in 2025 to 1.326 million units.
  • AEB says combined passenger and light commercial vehicle sales declined 17% for the year.
  • Light commercial vehicle sales dropped 21.9% to 87,587 units, with leading brands including GAZ, Lada and UAZ.
  • November and December posted year-on-year gains of 5% and 10.6% as buyers pulled purchases forward ahead of scrappage fee increases.
  • AEB cites higher VAT, steeper scrappage fees and elevated interest rates as factors likely to keep demand weak early in 2026.