Russian car sales experienced a sharp decline in May, dropping by 28% compared to the same period last year. This decrease surpasses the decline observed in April, indicating a worsening trend in the automotive market.

Lada, a brand previously seen as resilient, is facing significant challenges. Sales of Lada vehicles have fallen by 36%, with the Vesta model experiencing a particularly steep decline, dropping by half compared to May 2024.

Other brands are also struggling. Chery and Haval experienced sales decreases at the market level, while Geely and Changan saw even more significant drops of 39% and 44%, respectively.

Despite discounts, there is no revival in sales in the car market. High interest rates, which negatively impact car loans, are hindering the car market.

The stagnation in Lada sales threatens ambitious production plans for 2025. AvtoVAZ initially aimed for 500,000 cars but may only sell 300,000 to 350,000 cars. The upcoming release of the new Lada Iskra may offer some boost.

The commercial vehicle market is also facing difficulties, with truck sales plummeting by 63% and bus sales by 49%.