The new car market in Russia is experiencing a sharp decline: in the first half of 2025, sales dropped by nearly 30%. This situation threatens the existence of a significant portion of the country’s showrooms.
This is reported by Finway
Mass Closures of Showrooms Amid Sales Decline
According to experts, by the end of the year, up to 20% of car showrooms in Russia may cease operations. In the second quarter of 2025 alone, 137 showrooms halted their activities, and the total number of showrooms decreased to 2,950 units. The number of active dealer contracts fell by 183 to 4,330.
The company “KlyuchAvto” suffered significant losses, having started the year with 90 contracts, but by July, only 36 remained. The brands that sell only a few cars per month per dealer are experiencing the most significant reductions. Brands such as Kaiyi, BAIC, Livan, and “Moskvich” are at risk.
The Crisis Has Even Affected Premium Brands
The crisis has also impacted the luxury and premium car segment. In particular, the company “Avtodom” announced the closure of its Lamborghini center in the business district of “Moscow-City.” Experts cite the slowdown in the economy and a significant decrease in demand for new cars in Russia as the main reasons for the mass showroom closures.
“As reported, in the first six months of the year, the Russian automotive market collapsed by 28%. Only 530,000 new passenger cars were sold. By the end of last month, dealers had accumulated 500,000 cars for which no buyers were found.”
Russian analysts do not predict a quick recovery for the market. According to them, if the situation does not improve, car dealers will face a wave of bankruptcies or mergers.