Russian Vehicle Market in August 2023 grows for the 5th month in a row following 15 consecutive losses, with 60,596 new units sold (+25.3%). YTD figures at 434,819 are down 4.9% from the previous year.
Market Trend and Outlook
The Vehicle Market in August 2023 grows for the 5th month in a row following 15 consecutive losses, with 60,596 new registrations (+25.3%). YTD figures at 434,819 are down 4.9% from the previous year.
This collapse has been a consequence of western companies exiting from the country, local manufacturers not being able to keep up with demand and the economic crisis which has reduced buyers purchasing power.
With the conflict in Ukraine not showing signs of slowing down, the damage on the economy and consequentially the vehicle market will, with high probability, continue through 2023.
Looking at cumulative data up to August 2023 brand-wise, Lada is the brand with the most sales at 206,321 (+100.1%), followed by Haval -up 7 spots- at 60,518 new registrations, a 264.2% year-on-year growth. Chery in third also reports a positive performance, with 38,232 new sales (+31.8%).
Geely moves up 9 spots into 4th with 33,653 sales (+185,1%), followed by Gaz with 32,166 registrations (+49.1%), UAZ at 20,822 (+48.7%) and Changan – up 13 spots- with 13,411 sales (+346.7%).
In 8th place Kia with 8,466 sales (-84.2%), followed by FAW with 5,933 (+319.9%) and in 10th Great Wall with 5,907 units sold (+964.3%).
Medium-Term Market Trend
Russian automotive industry grew up at an all-time record of 2.92 million units in 2013, and it was among the top 10 in the World.
However, the market was severely hit by Crimea invasion-related sanctions and since 2014 dropped down losing over half of the volume in only three years landing at 1.42 million units in 2016 when the fall ended, to start a progressive recovery to near 1.8 million in the 2019.
The pandemic effects in 2020 reduce sales volume in the range of 1.5 million, but when Russia invaded Ukraine, the 24th of February 2022, the cost to the industry was heavy. In fact, the market lost 58.8% in volume, reaching a total of 686,497sales.
If the trend posted at the start of 2023 continues through out the year, we project the market to fall another 30% to roughly 0.4 million cumulative sales.
Tables with sales figures
In the tables below we report sales for All Brands, Top 10 Manufacturers Group and Top 10 Models.