In 2025, sales of Lada, Russia’s leading car manufacturer, experienced a significant drop of nearly 25%, according to a report by the Kommersant business newspaper, which referenced statistics from the market analysis firm Avtostat.

Lada’s sales decreased by 24.4% compared to the previous year, totaling 329,890 units. This decline also led to a reduction in the brand’s market share, which fell from 27.76% in 2024 to 24.88%.

The overall market for new passenger vehicles contracted by 15.6%, with total sales reaching 1.3 million units in 2025.

This downturn underscores the mounting challenges posed by elevated borrowing rates and new government fees impacting Russia’s automotive sector. Interviews with car dealerships conducted by Kommersant revealed concerns regarding high interest rates and modifications in the calculation of vehicle recycling fees.

The proportion of Chinese brands in the Russian market decreased from 58.5% to 51.7% last year, a trend analysts attribute to localized production in factories that were previously owned by Western companies.

Following Lada, the second and third largest sellers in Russia in 2025 were Chinese brands Haval, with 173,300 vehicles sold, and Chery, with 99,810 units.

Production of Lada vehicles at AvtoVAZ’s main plant fell by 40% in 2025, resulting in 274,000 vehicles manufactured, with a further decrease expected to 265,000 units this year.