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According to data released by the Russian European Enterprise Association (AEB), Russian sales in August 2022 were 41698, down 62.4 per cent from a year earlier, moderating from the 74.9 per cent decline in July. Russia sold a total of 410600 vehicles from January to August this year.

Since the situation in Russia and Ukraine, monthly Russian car sales have fallen sharply compared with the same period last year. According to statistics, Russian cars fell 62.9%, 78.5%, 83.5%, 82% and 74.9% respectively from March to July compared with the same period last year. Although Russian car sales were still in a downward trend in August, the decline rebounded somewhat, and it was also the smallest monthly decline in a single month.

In terms of brands, the Lada brand of Avtovaz, a veteran Russian manufacturer, is still the highest-selling brand, with sales of 18087 vehicles in August, down 6.9% from a year earlier, an increase of 75.2% from a month earlier, and a significant increase in market share from 17.5% in the same period last year to 43.4%. As of August, cumulative sales of the Lada brand from January to August in 2022 were 103124 vehicles, down 59 per cent from a year earlier. In addition, GAZ and UAZ brands, both Russian brands, also showed a downward trend, with GAZ brand in fourth place, with sales down 43.7% to 2907 vehicles compared with the same period last year, while UAZ brand ranked sixth, with sales down 8.4% to 2491 vehicles.

Korean brand Kia ranked second, with sales of 4004 vehicles, down 76.8% from a year earlier, while sales of another Korean brand Hyundai plunged 79.5% to 2892 vehicles, falling to fifth place. As for French brands, the year-on-year decline was the highest. Although Renault used to be the largest car brand in the Russian market, it has gradually lost its market share because it has withdrawn from the Russian market. Renault ranked eighth with 1736 vehicles in August, down 82.1% from a year earlier, with a market share of 4.2%. Skoda brand sales are also dismal, with August sales falling 88.4 per cent year-on-year to 640 vehicles, leaving a market share of just 1.5 per cent. In addition, Volkswagen brand sold 534 vehicles in Russia, down 92.1% from the same period last year, becoming the brand with the biggest decline on the list, with a market share of only 1.3%.

By contrast, the sales share of Chinese car brands in the Russian market is growing rapidly. The Harvard brand, for example, ranked third in August with sales of 2990 vehicles, up 26 per cent from a year earlier, making it the only brand in the top 10 to grow, with an overall market share of 7.2 per cent, up from 2.1 per cent last year. The Geely brand fell 8.1 per cent year-on-year to 1990 vehicles, but its market share rose to 4.8 per cent. In addition, Dongfeng increased by 171.8% year-on-year; GAC increased by 6.9% year-on-year.

Russian car sales have been hit hard since the escalation of the situation in Russia and Ukraine at the end of February. In the context of the conflict between Russia and Ukraine, many car companies, including Volkswagen, Mercedes-Benz, BMW, Toyota, Nissan, and so on, have suspended production in Russia, while some car companies have stopped exporting cars to Russia. Europe, the United States, Japan and other car companies restrict exports and withdraw from the Russian market are the key reasons for the decline in Russian car sales.

Although Russian car sales have been declining in recent months, the share of Chinese-branded cars in the Russian market has increased significantly since April. The market share of Chinese brands remained around 9.5% in the first quarter of this year (from January to March), and began to increase sharply in the second quarter, including 12.6% in April, 16.9% in May, 21% in June and 24.3% in July. In August, Chinese brands accounted for 25.9% of the Russian market, according to Autostat, a Russian auto market analyst. There is a slight increase from 24.3% in July. According to statistics, 11037 Chinese-branded cars were sold in the Russian car market in August, with most of the sales coming from Harvard, Geely, Xingtuo and Chery, among which the higher-selling models were Harvard's first love of 2055, followed by Geely's colorful Yue sales of 1599, followed by Chery Tiger 7 PRO with 1595.

Generally speaking, at present, South Korea's Kia and Hyundai still maintain a certain market share, while European brands such as Renault, Skoda and Volkswagen gradually lose market share, while Chinese brands are in a momentum of growth. at the beginning of this year, Russian auto market analyst Avtostat said that some car companies operating in Russia were forced to close their production lines in Russia because of sanctions imposed by Europe and the United States. As a result, it aggravates the shortage of cars in the Russian market, and as a rigid demand, Chinese car sales in Russia will continue to grow for a long time.

It is understood that the Russian car factory has a total production capacity of more than 2 million vehicles, and originally planned to produce about 1.5 million vehicles this year, but affected by parts shortages and European and American sanctions, AFS said that Russian car production is expected to lose 760000 to 815000 vehicles this year and the loss is "irreparable." At the same time, Avtostat predicts that due to the impact of the general environment, the Russian car market will decline back to where it was 15 years ago by the end of this year, and passenger car sales are expected to be 500000-550000 by the end of the year. By contrast, Russia sold about 1.5 million passenger cars in 2021, meaning that passenger car sales in Russia could fall by as much as 60 per cent this year.

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