The Russian government’s Ministry of Industry and Trade released a draft Strategy for the Development of the Automotive Sector through 2035. It notes a sharp drop in domestic demand for cars, with a 55% decline observed in the first half of the year. The draft appeared in the federal publication portal that hosts draft normative acts and related notices.
The document highlights a set of challenges facing Russia’s automotive industry in 2022. It points to a significant shrinkage of demand in the home market, interruptions and suspensions in production driven largely by foreign manufacturers withdrawing from Russia, and persistent difficulties in securing key components and materials. The Ministry estimates that implementing the strategy will require roughly 600 billion rubles to advance the export of domestic products, and about 2.7 trillion rubles to boost investment in research and development and organize the production of essential components.
Officials from the Ministry of Industry and Trade contend that pursuing this strategy could safeguard the competitiveness of Russia’s automotive sector and position the nation as a hub for exporting technology by creating modern, innovative production facilities for electric and hybrid vehicles. Industry analysts project that by 2030 electric vehicles could account for as much as 15 percent of Russia’s entire car market, driven by new production capabilities and policy support.
Recent coverage in Russian outlets indicates a parallel trend in the used-car market. In spring, demand for imported used cars rose substantially, as reported by Avito Auto, with a year-over-year increase of about 93 percent. Prices rose as well, but buyers continued to show resilience, reflecting broader shifts in consumer preferences and availability in the evolving market landscape.