The AEB explained the decline in the Russian car market by the fatigue of the population

The significant decline in the Russian car market in May 2025 is explained not only by long weekends and holidays, but also by a number of other factors, including population fatigue from negative trends. This was stated by Alexey Kalitsev, Chairman of the Automobile Manufacturers Committee of the Association of European Businesses (AEB). He stressed the need for urgent government measures to support demand.

"In general, the general fatigue of the population from the current negative trends prevails. The expectation of the return of departed brands, supported by the media, leads to the fact that the potential buyer continues to vote in favor of bank deposits. The hope for an early reduction in the key rate by the Central Bank, as an opportunity to increase the availability of loans, also plays a deterrent role," the AEB quoted Kalitsev as saying.

According to him, against the background of a declining market, pent-up demand continues to grow. According to Kalitsev, the law on taxi localization, which comes into force in March 2026 and is aimed at supporting local manufacturers with a high degree of localization, is unlikely to be able to significantly change the situation in the short term.

At the same time, the AEB expressed hope that the government's decision to expand the concessional lending program to families with two or more children will have a positive impact on the market, and the effect is expected in the next quarter.

In the first 5 months of 2025, sales of new passenger cars and light commercial vehicles in Russia decreased by 26% year-on-year and amounted to 453.8 thousand vehicles (according to JSC PPK). The market volume in May was 93.8 thousand units, which is 29% less than in May 2024. The result in May was 11.5% lower than in April.

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Earlier that day, it was reported that Lada Granta led the Russian car market among all models in May. In the last month of spring, 12 thousand Granta machines were sold, including those produced on its basis. This is 35.1% less than a year ago. Also in May, the Lada Niva Legend model entered the top three best-selling crossovers and SUVs in Russia (the SUV segment) for the first time in 13 months.