Support The Moscow Times!

Lada Sales Plunge 25% in 2025 as High Interest Rates, Recycling Fees Bite

A customer visits a Lada dealership. Dmitry Yagodkin / TASS

Sales of Russia’s flagship car brand Lada fell by nearly 25% in 2025, the Kommersant business newspaper reported Tuesday, citing data compiled by market research firm Avtostat.

Lada sales fell 24.4% year-on-year to 329,890 vehicles. That further cut the brand’s market share to 24.88% from 27.76% in 2024.

The overall market for new passenger cars shrank by 15.6%, totaling 1.3 million vehicles sold in 2025.

The decline highlights the increasing pressure of high borrowing costs and new government fees exerted on Russia’s automotive market. Car dealers interviewed by Kommersant pointed to the high key interest rate and changes in the rules for calculating the vehicle recycling fee.

The share of Chinese brands on the Russian market fell from 58.5% to 51.7% last year, with analysts attributing the shift to localized production in former Western-owned factories.

After Lada, 2025’s second and third biggest sellers in Russia were the Chinese brands Haval at 173,300 vehicles and Chery at 99,810.

Production of Lada cars at AvtoVAZ’s flagship plant fell 40% in 2025 to 274,000 vehicles, with a further decline to 265,000 expected this year.

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