russian Automobile Industry Stalls: Consumers Choose Older Foreign Cars

russian automakers are facing a deep crisis: warehouses are overflowing, while consumers are refusing to buy domestic cars even as a compromise between price and quality. The “Moskvich” plant produced only 8,000 cars in the first half of the year, compared to an annual plan of 120,000. “AvtoVAZ” plans to switch to a four-day week and is reducing its production plans.

Against the background of declining sales, car manufacturers are lobbying for an increase in the disposal fee on imported cars to encourage russians to switch to local brands. However, consumers remain loyal to Western brands, even used ones.

The average age of passenger cars in russia in 2025 is 16 years. Out of the 46 million registered cars, 35 million are over 15 years old. In the first half of the year, imports of used cars increased by 6.5 % to 229,000 units. The leaders in supply are Japan (over 40 %) and North Korea (over 20 %).

At the same time, cars from Western brands assembled at local plants are coming in from China through grey schemes. It is noteworthy that the top 10 most popular used cars in January–July include nine Western brands and not a single Chinese one.

Since the beginning of the year, car dealerships, mainly of  Chinese brands, have been closing in russia. As of September, their number has decreased by 9 %, and in some large cities, by up to 30 %. Another third of dealers are on the verge of bankruptcy.