Sales of new vehicles in Russia fell 2.3% year-on-year in 2019 to 1.78 million units, and vehicle production similarly fell to 1.72 million units, a 2.8% year-on-year decrease. As 2020 arrived, automakers were prepared for a short-term rise in consumer demand ahead of an expected price-hike, driven by a slump in the exchange rate of the rouble—the currency dropped 15% against the dollar in March 2020—and a rise in value added tax (VAT) from 18% to 20%. However, as with all markets, 2020 has also been largely defined by the disruption brought by the novel coronavirus disease (COVID-19).
