How Sanctions Are Destroying russia’s Auto Market
The market for new light vehicle sales in russia has collapsed by a quarter over the past year due to the declining standard of living among russians. High interest rates make car loans unaffordable. Meanwhile, the price of imported used cars has also surged following a sharp increase (by 70-85%) in the recycling fee.
The bet on import substitution and the Chinese auto industry has also failed. russians are reluctant to buy domestic and Chinese-made cars, leading to a stockpile of half a million unsold vehicles, including 100,000 Lada cars.
russians who believed the war against Ukraine would not affect them are now experiencing its consequences firsthand.
