Russia’s Vehicle Output and Brand Mix: Domestic Growth and Foreign Decline in 2023

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During the first half of the year, Russia produced a total of 339.2 thousand automotive vehicles, including trucks, cars, and buses. This figure reflects a 12.6 percent decline from the same period in the previous year. The production totals were reported based on industry data from a prominent market research source and its accompanying company report.

Within this overall output, passenger car manufacturing fell by 21 percent, reaching 236.3 thousand units. Yet, domestic brands surged, growing by 88 percent to 172.6 thousand units. In contrast, passenger cars from foreign brands dropped by 69 percent to 63.7 thousand units, illustrating a shift in market composition toward local brands during this interval.

The share of foreign cars in Russia’s total passenger car production for January through July 2023 stood at 26.9 percent, a sharp decline from 69.3 percent in the previous year, signaling a significant rebalancing in brand mix and import presence over the period.

Sales performance for one well-known domestic brand surpassed the 200 thousand mark by the end of August, marking substantial momentum beyond the total reached in the prior year. This milestone showed consistent year-to-date demand for the brand across its model lineup and highlighted a persistent consumer preference shift toward locally produced vehicles.

Earlier in the year, there was notable growth in the number of hybrid and electric cars, signaling rising adoption of electrified mobility within the market. The trend pointed to a broader industry push toward more environmentally friendly powertrains and a diversification of choice for Russian buyers.

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