AEB favors increased state support for demand on Russian car market amid pressure from high key rate

MOSCOW. May 7 (Interfax) - The Russian car market grew 25% month-on-month in April thanks to wide-ranging offers and discounts from individual market players, though high interest rates make car purchases less attractive to Russian consumers than placing deposits, and the state must therefore take additional measures to support demand, the Association of European Businesses said.

The Russian Industry and Trade Ministry said earlier that 111,157 cars and light commercial vehicles (LCV) were sold in Russia this April, down 24.7% year-on-year and up 27% month-on-month. Sales in Russia fell 24.7% to 380,425 in the first four months of 2025.

"April did not bring any surprises. The result of the month is quite predictable. The market continues to feel the impact of measures previously introduced by the state. A wide range of existing offers, as well as significant discounts from individual market players, which made it possible to slow down the decline in sales (relative to March, the market grew by 27%), are nevertheless not as attractive to consumers as the existing bank offers for placing funds," head of the AEB Automobile Manufacturers Committee Alexei Kalitsev said, commenting on car market results.

"It seems that the time has come for the state to intervene decisively and support consumer demand by resuming preferential programs and providing subsidies," he said.

At the beginning of March, the AEB confirmed its forecast of 1.4 million new car and LCV sales on the Russian car market in 2025. "We remain optimistic that the situation will stabilize and the market will recover in the second half of the year, not without customer support measures provided by the state," Kalitsev said.

The Automobile Manufacturers Committee also said it expected car market sales to continue decreasing year-on-year in coming months.