The head of AVTOVAZ announced a "dramatic" decline in the Russian car market

The Russian automotive market showed significant negative dynamics, declining by 44.4% in March 2025. It shows a dramatic drop, said Maxim Sokolov, the head of AvtoVAZ, according to a company statement available to Izvestia.

"The dramatic drop in the market in March and the results of the first quarter confirm our forecast last year of a significant reduction in the Russian automotive market in 2025, which is negatively affected by high key interest rates, stricter requirements for borrowers and general conditions for issuing loans from the Central Bank, as well as almost half a million stocks of foreign-brand cars imported in 2024, this leads to unprecedented unjustified dumping, and other unfavorable factors," Sokolov said.

Under these conditions, AvtoVAZ, also experiencing the pressure of its own excess runoff, shows more optimistic sales dynamics. This is influenced by the competitive pricing policy, the availability of services in the country's widest dealer network and favorable offers from a corporate bank, the top manager noted.

So, in March, 28.7 thousand Lada passenger cars and light commercial vehicles were sold in Russia, which is 7.4% more than in February of this year, and 33% less than a year earlier. In total, Lada sales totaled 76.2 thousand units in the first quarter, and the Russian car market decreased by almost a quarter (-24.8%). The dynamics of sales of AVTOVAZ products decreased by 16.8%, while the market share reached 28.7%.

"In this situation, balanced regulatory decisions regarding the availability of loans and leasing for buyers, as well as regarding the balance of import flows, production and sales of domestic cars are especially important in order to avoid further transformation of negative market trends into a situation of a critical drop in sales in the industry," Sokolov stressed.

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On March 25, Alexey Podshchekoldin, head of the Russian Automobile Dealers Association (ROAD), said that dozens of car brands could leave the Russian market in 2025. In recent years, about 60 car companies have come to Russia, and only four of them are in demand — Changan, Chery, Geely and Haval, he noted.

On March 13, car dealers explained that rumors about the possible return of departed car brands were disorienting customers and raising false hopes through nostalgia about returning "the way it was before." There are no prerequisites for the return of the departed car brands in 2025. None of the big players will return until most of the sanctions on the car business are lifted, they are sure.