Decline in Foreign Car Model Introductions Signals Struggles in Russias Auto Market

In 2025, the introduction of new foreign car models in Russia has significantly decreased, indicating a sharp decline in consumer interest and a broader downturn in the nation’s automotive market, according to the analytical agency Avtostat.

During the first half of the year, only around 20 new foreign models were launched, a steep drop from over 100 introduced in the same timeframe in 2024, as reported by Avtostat’s director, Sergei Tselikov, to the pro-Kremlin newspaper Izvestia.

“The previous two years saw a notable surge in new models entering the market,” Tselikov mentioned. “The impetus for companies to launch new models was strong sales figures. However, as sales have diminished, so too has the introduction of new vehicles.”

He noted that several car manufacturers have decided to postpone or even cancel their planned launches due to the decreasing sales figures.

“Some firms have opted to completely withdraw certain model launches from the Russian market, while others are choosing to delay them,” he stated.

The few new models released this year have had mixed results. For instance, Chinese automaker Chery launched its Tiggo 7L crossover in April, achieving sales of 2,691 units by the end of June—an achievement Tselikov described as “remarkable in a contracting market.” Meanwhile, Haval’s H7 mid-size crossover from China managed to sell 1,216 units between March and June.

In contrast, some brands are struggling. South Korea’s KGM, which entered the Russian market in March with four models, has only sold a total of 137 units. Sales for the ROX 01 hybrid and Bestune T90 crossover, both released in early 2025, were particularly low at 87 and 50 units, respectively.

Irina Frank, the head of the dealership network Frank Auto, informed Izvestia that the surge of Chinese brands replacing Western companies that exited during 2022-2023 has largely come to an end as the year began.

“For the last two to three years, the market has been flooded with Chinese vehicles,” she explained. “Now, manufacturers and importers are adapting to the reality of a declining market capacity. The emphasis is shifting towards maintaining current product offerings rather than launching new ones.”

Maxim Kadakov, editor-in-chief of Za Rulem car magazine, indicated to Izvestia that Russia might see no more than 40 to 50 new models introduced by the end of 2025, including offerings from local manufacturers.

According to Avtostat, vehicle sales in Russia dropped by 26% year-on-year in the January-May period, totaling 440,259 units.

While the market had seen a recovery phase following the exit of Western automakers in 2022, growth slowed down in late 2024 due to rising interest rates, increased recycling fees, and overall market saturation.

Avtostat had predicted in December that Russia’s automotive market could contract by 10-20% this year, a forecast echoed by the Association of European Businesses, which projected a 15% decline for 2025.