Russia’s invasion of Ukraine last February caused major problems in many areas.
The auto industry has also felt the war on its own body. Ukraine is a major subcontractor of auto parts, including wiring harnesses. This has caused problems with supply lines and increased waiting times.
But the war also has consequences for the Russians on “home soil”. In the Russian market, car sales collapsed in 2022.
Many Russian factories sometimes had to stop production. The reason is that they have struggled to get spare parts and set up new supply chains after widespread sanctions were imposed.
Major manufacturer AvtoVaz now produces Lada without important safety equipment such as airbags and ABS brakes as a result of a parts shortage. Read more about it here:
approximately 60 percent decrease
In addition, Western automakers have left the Russian market. This makes the automobile industry – which relies heavily on Western investment and high-tech equipment – one of the hardest hit industries in Russia.
To top it all off, new car prices have increased significantly over the past year.
In total this resulted in sales failures of 58.8 percent. In 2022, just under 690,000 new cars were sold, while in 2021 the figure was more than 1.6 million. The figures do not include sales of the BMW, Mercedes and Chery brands. This is shown by figures from the European Business Association (AEB).
Video: Join us on a visit to the home of a true car enthusiast
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”