The Association of European Companies in Russia said that “sales of new cars in Russia fell by 83.5 percent year on year, according to the sector, under the influence of unprecedented Western sanctions imposed on the country’s economy and consumers, and only 24,268 cars and commercial vehicles were sold to Light in Russia in May.
The drop in sales last month followed a 78.5% drop in April. Sales of Lada, AvtoVAZ’s most popular and affordable brand, which is majority owned by the Nissan-Renault group, fell 84 percent to 6,000 units year on year.
Western countries have imposed tough sanctions against Russia in connection with Moscow’s military operation in Ukraine, which began in February. In May, Renault handed over its local assets to the Russian government, marking the first major nationalization since the imposition of sanctions. Renault owned 86 percent of AvtoVAZ, but was forced to leave the country.
Many automakers have stopped selling their vehicles or parts to Russia, such as Audi, Honda, Jaguar, and Porsche, and companies that have stopped production in Russia include BMW, Ford, Hyundai, Mercedes, Volkswagen, and Volvo.
Source: El Iktisad
