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Russian Auto Industry Faces 40% Collapse Without Urgent Support

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.

Crisis in Russia, Economy & Business

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

Kyiv Insider | June 4, 2025

auto, cars, collapse, russia

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.

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