Russia's car market shifts as used vehicles dominate amid rising costs

The Russian car market is facing major shifts as prices climb and buyer preferences change. New research shows that most consumers now favour used vehicles over new ones, with only a small fraction planning to purchase in the near future. Rising costs, economic pressures, and lingering effects of sanctions have reshaped the industry over the past five years.

Between 2021 and 2026, used car prices in Russia surged by 80–100%, driven by Western sanctions after the 2022 Ukraine invasion, supply shortages, and a volatile ruble. The average used car now costs around 1.4 million rubles, while new cars reached 3.49 million rubles in February 2026—a 12% increase from the previous year.

Demand has shifted sharply toward domestic and Chinese brands. Sales of Lada vehicles rose by 40%, while Chinese manufacturers like Chery and Geely now hold 50% of the market. Meanwhile, interest in European brands such as Volkswagen and Toyota dropped by over 70%. Most buyers prioritise reliability and durability, with 37% listing these as their top concerns. Financial constraints also play a role: 44% of potential buyers plan to use loans, and only 16% intend to pay with savings. Despite 74% having experience with used cars, 77% worry about hidden defects and technical problems. Looking ahead, just 6% of Russians plan to buy a car within the next year, with 3% aiming to do so within the next month. Another 12% expect to purchase within two years, reflecting cautious spending in an uncertain market.

The data highlights a clear trend: Russian consumers are turning to used cars from trusted brands while avoiding higher-priced new models. With financing challenges and reliability concerns shaping decisions, the market's future will likely depend on economic stability and the availability of affordable options. For now, domestic and Chinese manufacturers continue to dominate as European brands lose ground.