The Russian car market experienced a significant decline in May, with sales plummeting by 28% compared to the same period last year, according to the Autostat agency. This decline surpasses the drop observed in April, indicating a further weakening of the market despite ongoing discounts.

Lada, a brand previously considered resilient, has also suffered, with sales decreasing by 36%. Specifically, sales of the Granta and Lada Niva Travel models have struggled, while the Vesta model has experienced an even steeper decline.

Other brands have also experienced sales decreases. Chery and Haval saw declines matching market averages, while Geely and Changan experienced even more significant drops. The Belgee brand, which sells budget Geely models, has seen its progress stall. Omoda and Jaecoo also experienced sales declines.

The stagnation in Lada’s sales poses a threat to the company’s ambitious plans for 2025. The initial target of 500,000 cars now appears difficult to achieve, with a more realistic estimate falling between 300,000 and 350,000 cars. The upcoming release of the new Lada Iskra model may stimulate interest, but its impact on overall statistics is expected to be limited.

Car prices remained relatively stable in May, with most brands maintaining low prices due to accumulated inventory and decreased demand. The high key rate, which negatively impacts car loan demand, continues to hinder market recovery.

The Autostat analytical agency highlights the impact of discounts on sales. While some brands, particularly those in the third tier, have actively engaged in discounting, the results have been mixed. Brands like Solaris and Hongqi have shown positive momentum.

The Xcite brand, which assembles Chery Tiggo 7 Pro cars at a former Nissan plant, has struggled to gain traction despite discounts. Sales have fallen to approximately 500 units per month, leading to concerns about the project’s future.

Notably, a significant portion of the market, 4.4%, consists of cars manufactured in 2023 that have been sitting in dealer warehouses. Some brands, such as Ora, Jetta, and Livan, primarily sold these older models. Changan leads in terms of absolute sales of 2023 cars.

The commercial vehicle market is also experiencing a downturn, with truck sales collapsing by 63% and bus sales by 49% in May.