The Automotive Market in Russia is in Crisis, Car Dealers are Revising Strategies

Passenger car sales have decreased by 30%, in the truck segment the drop reached 60%

The automotive market in Russia is facing a serious crisis. According to the Russian Association of Automobile Dealers (ROAD), since the beginning of the year, passenger car sales have fallen by 30%, and the segment of trucks and commercial vehicles has shown an even sharper decline - over 50%. In such circumstances, car dealers are forced to revise their strategies.

Rising interest rates on loans and unstable demand are forcing companies to optimize their expenses. Many car dealers are reducing staff, abandoning less popular brands, and focusing on service offerings.

Since the beginning of the year, more than 200 dealer contracts have been closed in Russia, and this trend continues to grow. It is especially difficult for small companies and regional dealers, who face high operating costs and inflated plans from automakers.

Experts identify several ways to adapt to the new conditions. These include reducing the number of contracts and personnel, as well as re-profiling dealer centers for more promising brands. For example, at Avilon, some points have been reoriented to new brands, and at Rolf, they have abandoned the preliminary purchase of cars to avoid surpluses in warehouses.

The service business is becoming the most stable and profitable area. According to Avito Rabota, the demand for specialists in this area in the first half of 2025 increased by more than 60%, especially for master-receivers and car transporters.

Despite the reduction in official dealer contracts, the number of car dealerships in large cities continues to grow, mainly due to sales of used cars and Chinese brands. Leading market players hope that 2025 will be the bottom of the crisis, and from 2026 a sales growth of 10-12% is possible.

However, this requires a reduction in the key rate and government support. Without government assistance, it will be extremely difficult to maintain the dealer infrastructure, which affects not only business, but also jobs, as well as the availability of car services throughout the country.

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Sources
RBK

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