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July 7, 2022

Russia light vehicle market down by 82% in June

War in Ukraine and its economic impacts have caused the Russian vehicle market to collapse.

By David Leggett

The latest data on light vehicle sales in Russia shows a continuation of the sharp decline that has followed war in Ukraine and Western sanctions.

Sales of cars and light commercial vehicles in Russia in the month of June were down by 82% year-on-year to just 27,761 units according to the Moscow-based AEB.

June’s sharp decline follows a May drop of 83.5% and an April drop of 78.5%.

In the first half of 2022, sales of new cars and light commercial vehicles in Russia decreased by 57.5% compared to the same period in 2021 or by 500,521 sold units, and amounted to 370,228 cars and light vans sold, according to the AEB Automobile Manufacturers Committee (AEB AMC).

Unlike the usual practice, the AEB press release containing the data was notably devoid of any comment on the data or market trend from a member of the AEB Automobile Manufacturers’ Committee.

Market leader Lada achieved sales of 7,484 units in June (a decline of 81% against last year), in spite of a planned re-start to production lines earlier in the month.

GlobalData unit LMC Automotive has cut its forecast for the Russian vehicle market and now expects just 663,000 sales in 2022 – a decline of over 60%.

According to GlobalData’s database, Russia’s local automakers carry the greatest exposure to the collapsed domestic market, earning around 90% of their sales at home. Clearly, these players are not going to stop sales in their home country, but they are likely to struggle to secure the parts and components they need.

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