Drop in Russia’s car sales continues in November with 62% slump

Drop in Russia’s car sales continues in November with 62% slump
Russian car production has recovered somewhat in recent months but production remains down by almost two thirds and is unlikely to grow much faster. / bne IntelliNews
By bne IntelliNews December 7, 2022

Sales of passenger cars and light commercial vehicles (LCVs) declined by 62% year on year in November to 46,403 vehicles, according to the Association of European Businesses that oversees the industry. In the first 11 months of 2022, the market contracted by 61% y/y to 0.55mn vehicles sold. (chart & chart)

As followed by bne IntelliNews, sanctions imposed on Russia for its military invasion of Ukraine have brought the Russian car market screeching to a halt. However, Lada models from the largest Russian carmaker AvtoVaz posted some recovery in August and September, which was attributed to the launch of state-discounted car lease support.

Then in October Lada model sales dropped by 25% y/y. In November Lada remained the market leader, with 21,700 vehicles sold in November, but down by 18% y/y (and down by 49% y/y to 0.16mn vehicles for 11M22).

AvtoVaz’s Lada Granta, which remains the only domestically assembled model on the Russian market, sold nearly twice as well as a year earlier, with 13,000 vehicles sold in November. The model is the only budget offering on the Russian car market and is also the beneficiary of the preferential car loan programme. 

Chinese Haval remained the top-selling foreign brand, albeit down 7% to 4,500 in November, closely followed by another brand from China, Geely, with sales up by 24% to 3,500.

Amid an exodus of Western and Japanese carmakers from Russia, Chinese carmakers are already reportedly hard-pressing Russian dealers into lowering their purchase prices and also eyeing the takeover of vacant assembly capacities.