Support The Moscow Times!

New Car Prices Rise in Russia as Tax Hikes Take Effect

A Lada Iskra. Seversky (CC BY-SA 4.0)

Prices for new cars in Russia rose across the market at the start of 2026 as automakers moved to offset higher taxes and recycling fees, industry analysts said.

Manufacturers including Lada, Moskvich, UAZ, Belgee, Solaris, Omoda, Tenet and Tank have revised price lists in January, said Sergei Tselikov, CEO of analytics firm Avtostat.

Six additional brands raised prices in the final days of 2025, auto market analyst Oleg Moseyev said.

China’s Chery increased prices on all 2024-2025 models late last year by 45,000-90,000 rubles ($558-$1,116), or about 2-3%, Moseyev said, calling higher prices an inevitable long-term trend.

AvtoVAZ said it would index prices by an average of 0.5%. The slow-selling Lada Aura will drop 14% to 2.245 million rubles ($27,838), while the Lada Largus van will fall 4% to 1.587 million rubles ($19,679).

At the same time, prices for top sellers including Lada Granta, Iskra and Niva will rise by nearly 2%, while Lada Vesta prices will increase by up to 1% depending on configuration.

So far, prices have increased by about 2-4%, or 40,000-80,000 rubles ($496-$992), but further monthly increases are likely, Tselikov said.

If the ruble remains stable, automakers are expected to pass on the impact of a value-added tax increase to 22% from 20% in January, as well as higher recycling fees.

Preferential rates for vehicles above 160 horsepower were scrapped in December and fees were raised by 10-20% from January.

Tselikov estimates prices could rise by 5-6% over the next three months.

Higher prices are expected to weigh on sales after strong late-2025 demand, when buyers rushed to purchase cars before increases took effect.

Russia sold 1.3 million new passenger cars in 2025, down 15% from the previous year, the Industry and Trade Ministry said.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more