The Lada brand

   The national manufacturer Lada, the central player of the Russian automotive industry, retained over 20 percent of the market share in 2019. The brand was leading in both primary and secondary markets as of May 2020. Two of its models made it in the top three of the most sold passenger car ranking, with Granta leading the list at over 84 thousand units in sales as of the first half of 2020.

Car sales and trade

   After a gradual decline in sales of passenger cars and light commercial vehicles (LCVs), the trend turned positive in 2017. Sales volume climbed up to 1.7 million units in 2019. A sport utility vehicle (SUV), the most desired type of car by the Russian customer, generated the largest market sales turnover by the first half of 2020, with the Korean Hyundai as the most sold brand in this category. The second largest segment in terms of sales was B-class with over 106.5 thousand units sold during the first nine months of 2020.

As for trade, imports volume has been steadily shrinking over the last years. In 2019, Russian car exports exceeded the import value of passenger and light commercial vehicles roughly twice in volume. However, Lada exports to European Union have been discontinued since 2018, due to ecological regulations in the European market.

Vehicle production

   Production dynamics, similar to sales, saw a moderate improvement after 2017. However, foreign localized brands’ production levels, which represented over 70 percent of aggregate passenger cars and LCV production as of the first half of 2020, accelerated and are expected to reach over 1.1 billion cars in production by 2024. Accordingly, only about 12 percent of car dealership networks were of national origin by 2019.

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