Sales of Lada cars in May 2025 dropped sharply in Russia, falling 16% compared to April and 36% year-on-year.

Source:Russian analytical agency Avtostat, as reported by The Moscow Times, an independent Amsterdam-based news outlet

Details:Avtostat reported that 25,552 Lada cars were sold in May. Over the first five months of 2025, the brand’s sales declined by 26%, mirroring the broader automotive market’s downturn.

In May, Lada was among the top five brands with the largest sales drops, outperformed only by Solaris (-70%), Omoda (-54%), Changan (-43.5%) and Geely (-38%). Lada’s market share fell below 25%, down from over 30% in some months of 2024.

Avtostat’s General Director, Sergei Tselikov, attributed the market’s decline to the growing popularity of foreign cars imported through alternative channels. While total new car imports fell by 73% in May, the share of "alternative" imports rose from 17% in January to 39% in May.

This trend is driven by fleet operators purchasing large foreign cars ahead of a new taxi localisation law, which will only permit specific models, especially those from AvtoVAZ.

Due to weak sales, AvtoVAZ is reducing production. Of the planned 500,000 cars for 2025, AvtoVAZ President Maksim Sokolov stated that 300,000-350,000 is a more realistic target.

"Sales could decline by a quarter year-on-year in June," Sokolov predicted, citing "dumping by Chinese brands", rising car loan rates and falling purchasing power as key factors.

Background:

• AvtoVAZ’s warehouses in Russia hold 100,000 unsold cars, exceeding the normal inventory of 60,000.
• AvtoVAZ may further cut car production in 2025 due to declining sales and the rouble’s devaluation.

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