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Russia new car sales sink by 62.4 percent in August

New car sales in Russia were down 62.4 percent in August year-on-year, industry data showed Tuesday, as Moscow is facing a barrage of Western sanctions over its military campaign in Ukraine. In August, 41,698 cars and light commercial vehicles were sold, according to figures released by the Association of European Businesses (AEB). This was down 62.4 percent from the same month in 2021, AEB said. The collapse in car sales began in March, as Western capitals pummelled Moscow with unprecedented sanctions after Russia sent troops into pro-Western Ukraine. Western carmakers have ventured into Russia to assemble cars over the past two decades as the country’s economy expanded, but now many local car factories have been forced to shut down. Makes that have halted Russian production include BMW, Ford, Hyundai, Mercedes, Volkswagen and Volvo. Numerous car makers have also stopped sales of their cars or parts to Russia — including Audi, Honda, Jaguar and Porsche. Faced with a shortage of imported parts, authorities have eased safety and emission standards for locally produced cars in May — including dropping the requirement for airbags. Russia has also allowed for hundreds of categories of goods, including major car brands and spare parts, to be imported without the agreement of the intellectual property owner in an effort to bypass sanctions.

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