Car sales in Russia saw a significant increase in July compared to the same period last year, according to a report by analytical agency Autostat. The domestic automobile industry has been able to bounce back from the impact of Western sanctions, leading to a surge in sales.
In July, a total of 95,654 new passenger cars were sold in Russia, which is almost three times higher compared to July 2022. This data was obtained from consulting company PPK, a partner of Autostat. The leading brand in terms of sales was the Russian LADA, with 27,376 cars sold last month. This represents a remarkable 163% increase from the previous year. Following closely behind are Chinese car brands, which have filled the void left by departing Western manufacturers.
Chery, the second most popular brand in Russia, experienced a significant surge in sales with 10,735 cars sold, representing a 316% increase. Geely came in third with 8,785 cars sold and a 278% increase. Haval and Changan were also part of Russia’s top five bestselling car brands in July. However, Korean brands Kia and Hyundai witnessed a decline in sales, with a drop of approximately 20%.
Overall, statistics show that a total of 497,230 passenger cars were sold in the first seven months of this year, marking a 28.2% increase compared to the same period in 2022. This positive trend is consistent with Autostat’s previous report, which indicated a 151% jump in sales year-on-year for the month of June.
The Russian car industry faced a crisis due to heavy reliance on foreign investment and equipment, compounded by the departure of foreign manufacturers following Western sanctions related to the conflict in Ukraine. However, Chinese automakers have recently made substantial investments and are making significant expansions in the Russian market. As a result, they are expected to capture a 60% share of total car sales in Russia by the end of this year, according to car dealer chain Autodom.
In conclusion, the Russian car industry has witnessed a remarkable recovery, with car sales witnessing a significant surge in July. The rise in sales can be attributed to the increased market presence of Chinese car brands, filling the void left by Western companies. This positive trend bodes well for the Russian automobile industry as it continues to rebound from the impact of Western sanctions.