Car sales in Russia have fallen to record level
2023.01.12 07:08
Car sales in Russia have fallen to record level
By Tiffany Smith
Budrigannews.com – The Association of European Businesses (AEB) reported on Thursday that Russian car sales fell by 588.8 percent in 2022 as a result of Western sanctions on Moscow.
Following the imposition of sanctions in response to Moscow’s military actions in Ukraine, a number of Russian automakers halted production for portions of the previous year. This was due to the industry’s difficulty locating replacement parts and establishing new supply chains.
The head of the AEB’s automobile committee, Alexey Kalitsev, stated at a briefing that “the issues with sanctions and unprecedented pressure on the Russian market on all fronts, of course, could not but affect the automotive industry.”
Western automakers with a lot of attention, like Renault (EPA:) also left the market, making the industry, which had previously relied heavily on Western investment and high-tech equipment, one of the hardest hit by the conflict’s aftermath.
Due to a shortage of parts, major manufacturer Avtovaz sold Lada automobiles without airbags or anti-lock braking systems (ABS).
According to Kalitsev, the primary “deterrent” to a rebound in sales remains the fact that car prices have also increased significantly in Russia. In 2022, Russian retail sales fell across the board due to a recession, fluctuating prices, and increased uncertainty.
According to the AEB, total vehicle sales for the year totaled 687,370, compared to over 1.6 million in 2021. The month of December saw a 50.2% decline in sales. The sales of BMW, Mercedes-Benz, and Chery are not included in the figures.
Sales were expected to rise by 12% in 2023 to approximately 770,000 vehicles, according to the industry body. Without providing any specifics, Kalitsev stated that he anticipated 5-7 new car brands entering the Russian market this year.
“With a favorable set of circumstances, growth of more than 12 percent is also possible. However, in light of the current circumstance, no one can predict anything,” he stated.
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