Chinese and Russian brands dominated sales in the $50 billion market, according to Avtostat

Russians spent a record 4.91 trillion rubles ($50.1 billion) on new cars last year, according to data from analytical agency Avtostat. Chinese and domestic Russian brands dominated sales in 2024, filling the gap left by Western and Japanese automakers that exited the market following anti-Russia sanctions and geopolitical tensions.

The figure marks a 57% increase from 2023, a recent joint study by Avtostat and Gazprombank Auto Leasing shows. A total of 1.57 million new vehicles were sold last year in Russia, the highest number in the past five years.

"The financial capacity of Russia's new passenger car market has set a record for the second year in a row. Last year, Russians spent 57% more on new cars than in 2023, falling just a little short of five trillion rubles... The result was largely due to the sales volume... the best in the last five years, and rising car prices," Aleksander Kornev, head of importer relations at Gazprombank Auto Leasing, told Avtostat.

Chinese brands dominated Russia's new car market in 2024. According to December sales data, Chinese-made cars accounted for about 62% of total spending. Domestic brands followed with a 17.5% share. European brands made up 11%, Japanese cars accounted for 5.4%, South Korean cars 1.6%, and American brands just 1%. Avtostat also noted a rise in the sales of luxury vehicles.

The Russian automotive landscape underwent significant changes since the introduction of economic and trade sanctions against the country after the escalation of the Ukraine conflict in 2022.

Western, South Korean, and Japanese car makers exited the market, leading to a decline in their combined market share from 69% to 8.5%. In their place, Chinese brands such as Chery, Geely, and Great Wall Motor expanded their presence, increasing their market share from 9% to 57%. Additionally, there was a push to boost domestic production, with efforts to revitalize local brands and manufacturing capabilities.

Russia's domestic car industry saw Lada maintain its leading position, with the Granta and Vesta models being particularly popular among consumers. The increased availability and affordability of Chinese and Russian vehicles contributed to their growing popularity among the buyers.

READ MORE: Russia would welcome back foreign car makers ? Kremlin

In November, Kremlin spokesperson Dmitry Peskov stated that, if foreign automakers returned to Russia, competition with domestic and Chinese companies would emerge, ultimately benefiting Russian consumers with higher-quality products at lower prices.

(RT.com)