Due to the War and Sanctions, Russia’s Automotive Industry Is on the Brink of Survival
The profit of russia’s largest truck manufacturer, KamAZ, collapsed 28 times in 2024. Over the past year, the company’s net profit amounted to 731 million rubles (approximately 8.6 million USD), compared to 20.4 billion rubles (over 240 million USD) in 2023.
▫️ The company admits that the drop in profits is due to rising loan rates and increased taxes. KamAZ also struggles to compete with Chinese automakers offering significantly lower prices.
Due to sanctions, russia’s automotive industry is now in survival mode. The kremlin continues to pour massive resources into the war, leaving even strategically important enterprises like KamAZ without adequate support.
The Center also reported that the market for new passenger car sales in russia has collapsed by a quarter over the past year due to the declining standard of living.
