Russia’s new vehicle market appears to have recovered faster than expected from the COVID-19 pandemic. However, the prospect of further declines can never be ruled out in a market that has so frequently been impacted by geopolitics. Automakers remain wary of a continued downturn at this stage.
The country is still feeling the effects of the last economic crisis, where the new vehicle market fell by more than half in the space of just two years. In 2014, 2.8 million new light vehicles rolled off Russian production lines, but falling oil prices and a significant devaluation of the rouble saw the market fall to just 1.3 million by 2016. COVID-19 is a particularly unfortunate setback for automakers in the country, which may now need to enter a rebuilding phase once more.
Signs of recovery
The light vehicle market took a heavy blow
