Russian car sales in 2021 increased by 4.3% year-on-year, and Chery sales surged by 224% year-on-year

According to foreign media reports, the European Enterprise Association (AEB) said on January 13 that New Car sales in Russia in 2021 increased by 4.3% year-on-year, to a certain extent, getting rid of the decline in sales caused by the new crown pneumonia epidemic lockdown, but the growth of the car market this year is expected to slow down.

(Image source: Lada)

Car sales in Russia were 1.67 million last year, while lockdown measures in the country to curb the spread of the coronavirus in 2020 led to a drop in car sales to 1.6 million, the association said. In December alone, Russian car sales fell for the sixth consecutive month, down 20 percent from the same period in 2020 to 133,470 units, compared with a 20 percent decline in November.

Renault's AvtoVAZ sold 350,714 cars in Russia last year, and the company's Rada is the best-selling brand in Russia. Haval and Chery remain The best-selling Chinese car brands in Russia, with sales of 39,126 and 37,118 units in Russia last year, up 125% and 224% year-on-year, respectively, and ranking 12th and 13th in the sales list. Geely also entered the top 20 with sales of 24,587 units (up 59% year-on-year).

Olivier Mornet, president of sales and marketing at AvtoVAZ, expects car sales to rise slightly in the Russian market this year. "Maybe car sales in Russia will rise slightly to 1.75 million units in 2022, but this is a baseline forecast and many factors will affect it." Mornet said.

AEB, the representative body for foreign investors in Russia, expects car sales in Russia to reach 1.72 million units in 2022, a year-on-year increase that will slow to 3.3 percent. However, the agency's forecast is based on the fact that the geopolitical situation will not deteriorate and that there will be no new foreign trade restrictions, particularly sanctions.

Global factors such as shortages of electronic components, logistical challenges and rising material costs are all contributing to the severe supply shortage, AEB said. "There is no indication at this time that these situations will improve rapidly." AEB President Thomas Staertzel said in a statement.