Russia’s Road-Building Equipment Market Collapses, Falling Over 40% in 2025
Crisis in Russia, Economy & Business

Russia’s Road-Building Equipment Market Collapses, Falling Over 40% in 2025

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Russia’s domestic market for road-construction equipment is experiencing a severe contraction, with sales falling by 41.3% in the first five months of 2025 compared to the same period last year. Total revenue dropped to just 18.4 billion rubles (approx. $210 million), according to data from the Rosspetsmash Association, a Russian industry group representing manufacturers of specialized machinery. The downturn is accelerating.

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Russian Auto Industry Faces 40% Collapse Without Urgent Support
Crisis in Russia, Economy & Business

Russian Auto Industry Faces 40% Collapse Without Urgent Support

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Russia’s Ministry of Industry and Trade has sounded the alarm over a potential 40% collapse in the domestic automobile market by the end of 2025. Speaking at a Federation Council Committee on Economic Policy meeting, Industry Minister Anton Alikhanov confirmed that the ministry is preparing urgent measures to stabilize the sector amid a steep downturn driven by soaring interest rates and shrinking access to consumer credit.

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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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