The Russian automotive market is projected to experience a significant decline this year, indicative of a steep drop in consumer demand and the overall consequences of an ailing economy.

In a press release issued on Thursday, the Association of European Businesses updated its predictions for the Russian car market for 2025, now forecasting a 24% reduction in sales, bringing the total to 1.25 million vehicles.

Previously, they had estimated a 15% drop with sales of around 1.4 million vehicles for the same year.

Analysts from the association suggested that the market could see a rebound if the government intervenes with support measures, particularly through the renewal of state initiatives designed to stimulate demand.

The press release also noted, “We anticipate that the initial slight reduction in the key interest rate will aid in stabilizing the market, with additional decreases expected to foster positive growth,” referencing the Central Bank’s decision to lower the key interest rate from 21% to 20% in early June.