imposed by the U.S. and its allies in Europe, Korea, and Japan. Although Russia did have a bit of a domestic industry before the war, its consumers preferred vehicles made by foreign automakers.
“It’s not only that sales have plummeted, but it’s that sales of foreign brands were just so high before the war,” said Tian. “If you go around Moscow and St. Petersburg, you find that elite Russians only drive the car brands we recognize, , Jaguar, Hyundai, and so forth. The only Russians driving Ladas were those with less disposable income.”or Chinese brands like Geely. The latter has seen its sales increase by 88 percent year-over-year, but that’s not making up for what was lost following the invasion.
Indeed, Tian suggests that the availability of foreign vehicles is just one piece of the economic puzzle. In addition to supply, Russians are also struggling with soaring prices and deteriorating consumer sentiment, negatively impacting the wider economy.