Sales of new cars continued their slide in Russia in May, falling 83.5% year on year, weighed down by inflation and significant Western sanctions once morest Moscow for its offensive in Ukraine.
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In May, 24,268 new light vehicles were sold, according to figures published by the Association of European Businesses (AEB), which brings together manufacturers in the sector.
Compared to April, this is a decrease of 52%.
The collapse in sales began in March, following Western countries imposed heavy sanctions on this sector, in particular banning exports of spare parts to Russia.
Beyond sales, it is automobile production that is among the Russian industrial sectors suffering the most.
The withdrawal of many foreign brands from the country and the cessation of spare parts deliveries have forced many local factories to stop. In April, car production had thus fallen by 85.4% over one year.
Since the entry of Russian troops into Ukraine on February 24, many producers have also announced the cessation of the sale of components or cars to Russia or the cessation of production in Russia.
Another thunderclap: Renault, whose work in Russia with Avtovaz had straightened out this giant, sold its assets to the Russian state, a first major nationalization.
Tens of thousands of workers at Russia’s top car maker, Avtovaz, have been on paid leave for months, and most of its production has been shut down.
Inflation and the instability of the ruble have also reduced the possibilities for Russians to buy imported products, especially cars.
Major global automakers had invested heavily in Russia during a period of growth in the 2000s.
In May, Russia published a list of around 100 categories of goods that are allowed to be imported without the agreement of intellectual property owners in order to circumvent the restrictions.
Among these products, we find in particular the major car brands and spare parts.
Russia has also relaxed the standards for the manufacture of vehicles on its territory, authorizing the production of cars without ABS or airbags, because of the shortages of electronic components and spare parts.
