Russia’s Automotive Sector Collapses Again In May, Down Another -28%
Crisis in Russia, Economy & Business

Russia’s Automotive Sector Collapses Again In May, Down Another -28%

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Russia’s automotive industry continues its spiral, with passenger car and light commercial vehicle sales plummeting another -27.5% year-on-year in May 2025, totaling only 98,300 units. This decline continues the downward trend observed in April, where sales dropped by 26%. The Ministry of Industry and Trade attributed the May slump to seasonal factors. However, auto dealers contest this explanation, noting that May typically sees a boost in demand.

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Russia’s automotive industry continues to collapse
Crisis in Russia, Economy & Business

Russia’s automotive industry continues to collapse

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Russia’s automotive industry continues to collapse One of Russia’s largest industrial sectors is dying in plain sight. The country’s automotive industry, once a key pillar of Soviet-era manufacturing and a symbol of post-Soviet modernization, is now in terminal decline. Since the 2022 invasion of Ukraine, Western sanctions, the exodus of foreign manufacturers, and Russia’s inability to develop a self-sufficient supply chain have gutted the sector.

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