Leading Western carmakers led by Renault have either suspended operations or left Russia since the sanctions took effect.
Car sales in Russia recorded a drop of 83.5% in Mayrecording one more historic fallthe European Business Association (AEB) announced today, as Western sanctions have decimated the Russian car industry with spare parts shortages and rapidly rising prices.
THE Russia has sent troops to Ukraine on February 24 and since March new car sales have been declining as sanctions have blocked major supply chains. Only 24,268 vehicles were sold last month, AEB said. A year earlier, sales were six times higher.
Leading Western carmakers led by Renault have either suspended operations or left Russia since the sanctions took effect. The country’s automobile industry is dependent on global supplies, and the shortage of spare parts has reduced production volumes several times since February 24.
According to the Russian statistical service Rosstat, car prices have jumped by almost 50% since the beginning of the year, affecting demand in a country where household incomes have fallen, while inflation is close to high levels of 20 years.
AEB did not forecast the performance of the Russian car market this year. In April, he predicted that new car sales in Russia would fall by at least 50% in 2022.
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