Domestic Brands and Chinese Automakers Lead the Recovery
In a stunning comeback, car sales in Russia experienced a remarkable surge, skyrocketing by an impressive 151.8% year-on-year in June, as reported by analytical agency Autostat. This surge continues to propel the Russian car industry’s rebound from the drastic slump it faced in 2022.
The Russian auto industry, heavily reliant on overseas investment, equipment, and parts, endured significant setbacks due to Western sanctions imposed in response to the conflict in Ukraine. Last year, sales of new cars plummeted by a staggering 59%, leading numerous foreign automakers to withdraw entirely from the Russian market.
According to Autostat, in collaboration with partner consulting company PPK, June witnessed a robust sales figure of 82,407 vehicles, showcasing a substantial increase from 72,171 units sold in May. This significant growth becomes even more striking when compared to the meager 32,731 vehicles sold in June 2022.
Despite the challenging landscape, Russia’s homegrown brand Lada maintained its dominance in the domestic market throughout June. Furthermore, Lada achieved an impressive market share growth, capturing 33.5% during the first half of the year, surging from a modest 20.8% in 2022.
Avtovaz, the manufacturer of Lada vehicles, experienced an exceptional fourfold surge in June sales compared to the same period last year. This remarkable performance demonstrates the resilience and adaptability of domestic brands in the face of adversity.
Moreover, Chinese automakers have made a notable impact on the Russian market, filling the void left by departing Western firms. Six of the top 10 brands, including Haval (601633.SS), Chery, and Geely (0175.HK), are now Chinese manufacturers. Their strong presence indicates a growing acceptance and popularity of Chinese cars among Russian consumers.
As Russia’s auto industry steadily recovers, these figures emphasize the resilience and adaptability of both domestic and foreign players in this dynamic market. The rapid rebound signifies a renewed sense of confidence and offers promising prospects for the future of the Russian automotive landscape.
