Russia 2025. Market Downturn Opens Growth Opportunities For Changan

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Russian Vehicle Market in 2025 is stalling. Q1 figures dropped 1.6% to reach 240,689 sales. While russian Lada still hold top spot, chinese Changan and Jetour are quickly expanding their share, with impressive growth.

Economic Environment

Russia’s economy in 2025 faces significant challenges, with inflation at 8.9%, interest rates at 21%, and a 25% ruble depreciation, though government spending sustains growth. Defense spending is set to reach $132 billion, making up at least 33% of the federal budget, further straining economic stability. Despite heavy sanctions and supply shortages, Russia continues replenishing military equipment, relying on older Soviet-era stocks, Chinese microelectronics, and North Korean artillery shells.

Moscow gained 4,168 square kilometers of Ukrainian territory in 2024, with major city captures like Avdiivka and Vuhledar, while planning to fully control annexed regions by 2025.  Despite economic hardships, Putin’s approval remains high at 87%, and Russia’s war economy, though strained, continues to fuel the conflict at the expense of living standards.

Automotive Industry Trend and Outlook

Despite last year’s strong momentum, the Russian vehicle market dropped 1.6 to 240,689 sales in Q1 of 2025.   

Looking at data up to March 2025 brand-wise, Lada dominated with 77,278 sales (-15.6%). In second place the Chinese Haval -up 1 spot- with 31,185 (-16.8%) while Chery -down 1 spot- ranked 3rd with 27,199 (-33.1%).

Geely followed in 4th with with 16,452 (-43.5%) while Changan -up 16 spots- ranked in 5th with 13,292. In 6th place Gaz –down 1 spot- with 10,943 sales (-7.9%).

UAZ -up 1 spot- ranked in 7th and sold 10,039 vehicles (+58.4%), followed by Great Wall -down 2 spots- at 7,486 (-9.9%) and Omoda -down 3 spots- at 6,513 (-23.7%). Closing the Top 10, Jetour -up 11 spots- ranked in 10th with 6,046 sales. 

Looking at the best selling models, the leader was the Lada Granta despite losing 26% in sales, followed by the Lada Vesta -up 2 spots- (+0.2%) and the Gaz Gazelle -up 5 spots- (+138.2%).

EV Market Trend and Outlook

Russia’s EV market is losing momentum in 2025, with Q1 figures  dropping 45.5% as higher loan costs, rising customs duties, and recycling fees dampen demand. EV adoption remains sluggish, struggling to scale up.

Local manufacturer Evolute dominated the market, despite a 46.7% decline in sales. Audi ranked 2nd, growing 18.2%. 

Medium-Term Market Trend

Russia’s automotive industry peaked in 2014, reaching a record 2.49 million units, placing it among the top 10 global markets.

However, the Crimea invasion-related sanctions triggered a sharp decline, with the market shrinking 35.7% in 2015 before gradually recovering to 1.8 million units by 2019.

The pandemic in 2020 further reduced sales to around 1.5 million, but the Ukraine invasion on February 24, 2022, dealt a severe blow, causing the market to plummet 58.8% to just 686,497 units.

By 2024, the industry rebounded, surpassing 1 million units again, with a 44.7% surge in sales, reaching 1.365 million vehicles.

Tables with sales figures

In the tables below we report sales for All Brands, Top 10 Manufacturers Group and Top 10 Models.

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