COVID-19 hits Russian market hard, but future mobility remains a priority

The pandemic has affected the Russian market badly, but strong state support and innovation means cleaner, smarter mobility remains on the menu. By Xavier Boucherat

Sales of new vehicles in Russia fell 2.3% year-on-year in 2019 to 1.78 million units, and vehicle production similarly fell to 1.72 million units, a 2.8% year-on-year decrease. As 2020 arrived, automakers were prepared for a short-term rise in consumer demand ahead of an expected price-hike, driven by a slump in the exchange rate of the rouble—the currency dropped 15% against the dollar in March 2020—and a rise in value added tax (VAT) from 18% to 20%. However, as with all markets, 2020 has also been largely defined by the disruption brought by the novel coronavirus disease (COVID-19).

New registrations were down 16.5% year-over-year in the first half of 2020

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