The sale of new passenger cars in Russia was up by 56% in 2024 and grew by another 9% y/y in January 2025, the Association of European Business’s Automobile Manufacturers Committee (AEB) reported on February 5. (chart)

The total sales of new passenger cars and light commercial vehicles in 2024 amounted to 1,471,568 units excluding alternative supply channels, which is 56% higher than the result of 2023.

The Russian car sector came to a screeching halt following the invasion of Ukraine three years ago and was amongst the worst hit of all Russia’s industrial sectors. But over the course of the last year it has fully recovered and has surpassed pre-war results.

Total sales of new passenger cars and light commercial vehicles continued to grow y/y in January 2025 to reach 90,813 units, up 9% from the same month a year earlier, according to the AEB, but still down from the 133,867 units sold in December, a 3.7% gain y/y.

Chairman of the AEB, Alexey Kalitsev, said in a press release: “Due to the long holiday period, January is traditionally the most difficult month for sales. Negative expectations of a significant slowdown in consumer activity driven by the reduced availability of loans and by the growth of the disposal fee rate, expressed by most experts, have not come true. According to the data received, 9% more new cars were sold in January 2025 than in the same period last year. Obviously, dealers still have a certain stock of cars to support sales and the customer demand in anticipation of likely negative changes due to the continuing increase in the financial burden.”

All of the European Original Equipment Manufacturers (OEMs) have left the Russian market. Chinese manufacturers have stepped into the hole in the market left by their European competitors. Many of the factories, formerly run by the OEMs, have been taken over by Russian entrepreneurs and been put back into operation making new models.

“2024 showed rapid growth, which slowed down by the end of the year. As we have repeatedly stated throughout the year, such a sales result is due to deferred demand, as well as buyers' reaction to a potential reduction in imports and an increase in their financial burden,” Kalitsev said.

AEB reported that the share of local production of cars in Russia did not grow in 2024, and the growth in sales was largely driven by a rise in official imports. This year the experts at AEB are expecting an increase in local production, as the new owners begin to ramp up production. AEB forecast that in 2025, the overall car sales may shrink slightly to a total of 1.4mn unit sales.