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The sale of new cars in Russia collapses in May by 83.5% year-on-year, according to manufacturers

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New car sales continued their brutal decline in Russia in May, down 83.5% year-on-year, weighed down by inflation and Western sanctions against Moscow for its offensive in Ukraine.

In the month of May, 24,268 new light vehicles were sold, according to figures from the Association of European Businesses (AEB), which brings together manufacturers in the sector.

Compared to the month of April, it represents a reduction in sales of 52%.

This drop in sales began in March, after the imposition by Western countries of important sanctions on this sector, such as the export of spare parts to Russia.

Beyond marketing, the automobile production sector is one of the most affected in the country. In April, car production fell 85.4% year-on-year.

In addition, the departure from Russia of many foreign brands, which had invested massively in this market since the 2000s, forced local factories to stop production.

Tens of thousands of workers at Russia’s top automaker, Avtovaz, have been out of work for months, with most production halted.

Inflation and ruble instability also reduce Russia’s import alternatives.

To get around the restrictions, Russia published a list in May of hundreds of goods that can be imported without the agreement of patent owners.

These products include spare parts and the most important automobile brands.

On the other hand, the Russian government modified the vehicle manufacturing regulations to be able to produce cars without ABS or “airbag”, due to the shortage of electronic components and spare parts.

 

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