Russian Automobile Sales Forecast to Plummet by 24% Amid Economic Challenges

The Russian automobile market is projected to experience a significant shrinkage this year, which is indicative of a steep drop in consumer interest alongside the overall effects of a declining economy.

In a press announcement released on Thursday, the Association of European Businesses updated its forecast for the Russian car market for 2025, estimating that sales will fall by 24% to 1.25 million units.

Earlier, the organization had predicted a smaller contraction of 15%, expecting 1.4 million vehicles to be sold in 2025.

Analysts from the association noted that a potential recovery in the market could occur if the government steps in to provide assistance, particularly through the revival of state programs designed to stimulate demand.

The press release mentioned, “We also foresee that a slight initial reduction in the key interest rate might aid in stabilizing the market, with additional reductions potentially enhancing positive trends,” referencing the Central Bank’s decision to lower the key interest rate from 21% to 20% in early June.