Russian car sales down 58.8% in 2022 as sanctions hit industry hard
Reuters
Published Jan 12, 2023 06:51AM ET
MOSCOW (Reuters) -Car sales in Russia collapsed by 58.8% in 2022, the Association of European Businesses (AEB) said on Thursday, as the industry reels from the impact of Western sanctions on Moscow.
Several Russian auto makers suspended production for periods of last year as the industry struggled to source parts and establish new supply chains following the imposition of the sanctions over Moscow's military actions in Ukraine.
"The issues with sanctions and unprecedented pressure on the Russian market on all fronts, of course, could not but affect the automotive industry," the head of the AEB's automobile committee, Alexey Kalitsev, told a briefing.
High-profile Western auto manufacturers such as Renault (EPA:RENA) also left the market, making the industry - previously heavily reliant on Western investment and high-tech equipment - one of the hardest hit by the fallout from the conflict.
At one point major manufacturer Avtovaz was selling Lada cars without airbags or anti-lock braking systems (ABS) due to parts shortages.
Prices for cars have also risen significantly in Russia - a fact which remains the main "deterrent" to a sales rebound, Kalitsev said. Retail sales slumped across the Russian economy in 2022 amid a recession, price instability and heightened uncertainty.
Total car sales for the year came in at 687,370, compared to more than 1.6 million in 2021, the AEB said. In the month of December, sales were down 50.2%. The figures do not include sales of BMW, Mercedes-Benz and Chery brands.
The industry body forecast that sales would climb by 12% in 2023 to around 770,000 vehicles. Kalitsev said he expected 5-7 new car brands could appear on the Russian market this year, without providing details.
"With a favorable combination of circumstances ... growth above 12% is also possible. But no one in the world can predict anything in the current situation," he said.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.