Russian car dealers are suffering losses: car showrooms are disappearing en masse from the market
Up to 20% of car dealerships in Russia may close by the end of the year.
This is reported by The Moscow Times, citing data from the Russian agency “Avtostat”.
In the last three months alone, 137 car dealerships have closed in the country, bringing their total number to 2.95 thousand. The number of valid dealer contracts has also decreased – minus 183, leaving 4.33 thousand.
The company “KlyuchAvto” suffered the greatest losses, which at the beginning of the year had 90 dealer contracts, and by July was left with only 36.
At risk are brands that sell only a few cars per month through a single dealer. These include Chinese brands Kaiyi, BAIC, Livan, as well as the Russian Moskvich.
The crisis has also affected the luxury segment. The Avtodom company, for example, has already closed its Lamborghini showroom in the prestigious Moscow City district.
The reasons for the mass closures are obvious — the Russian economy continues to slow down, and the car market is rapidly falling. According to data for the first half of the year, sales of new passenger cars decreased by 28% — only 530 thousand cars were sold. Meanwhile, more than 500 thousand unsold cars have accumulated in dealers’ warehouses.
Russian experts are pessimistic. If the trend continues, the country will face a wave of car dealer bankruptcies or their mass takeover by larger companies.
Recall that Russia’s largest automaker AvtoVAZ stopped production from July 29 to August 11 inclusive . The official reason is “corporate vacation”, but in reality the decision is related to a critical situation in the market: the company’s warehouses are overflowing with unsold cars.
As reported, Russia’s largest truck manufacturer KamAZ announced that it will switch to a four-day work week from August 1 for units that are not fully loaded.
In addition, the profit of Russia’s largest truck manufacturer, KamAZ, decreased 28 times last year.
It is worth noting that in June 2025, passenger car production in Russia decreased by 28.2% compared to the same period last year, to 45 thousand units.
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