New automotive gross sales in Russia are falling off a cliff. Knowledge from the Affiliation of European Companies (AEB) reveals March 2025 gross sales down a whopping 45 p.c in comparison with the identical month final 12 months, with automakers promoting simply 83,000 autos final month within the nation. Gross sales for the quarter are down 26 p.c, to 254,000 models.

In line with the AEB, a lobbying group of overseas traders in Russia, that is the nation’s third-worst gross sales contraction previously 10 years. Gross sales fell 59 p.c in March 2022, a month after Russia invaded Ukraine, and 36 p.c in early 2015 in the course of the nation’s monetary disaster.

Issues sound dire this time, although. Alexey Kalitsev, the affiliation’s chairman of the Car Producers Committee, mentioned “the continuation of the present development might result in a disaster within the trade, which would require pressing help from the state.”

In line with Kalitsev, patrons believed “some beforehand departed firms would return to the Russian market,” which has not occurred, solely “rising the quantity of deferred demand, which sooner or later might result in progress.” The trade can’t survive if this development continues, although.

Many world automakers exited the Russian market or ceased operations there after the nation invaded Ukraine. Ford, BMW, Lamborghini, Toyota, Mercedes-Benz, and others took a spread of actions to distance themselves from the nation, together with paying staff to give up, promoting belongings, and ending manufacturing. Sanctions in opposition to Russia additionally damage its home automotive trade, placing additional monetary pressure on these firms.