It might surprise no one literally, but selling new cars in Russia completely in the trash right away. According to the report, sales in August of this year were down 62.4% compared to last year. Reuters.
It wasn’t even the worst month on record. The Association of European Businesses (AEB) said auto sales fell 74.9% in July 2022 compared with July last year. The organization said 41,698 vehicles were sold in August. This is down from more than 110,000 vehicles sold during the same period last year.
Factories across the country have halted production or reduced the number of workers due to a lack of everything needed to build cars, along with mass exodus of non-Russian car manufacturers exit the market of that country.
As you can imagine, this is a self-inflicted wound for Russia. Most, if not all, of these problems were prompted by Russia’s invasion of Ukraine in late February of this year. Since then, Russia’s auto industry, which Reuters says relies heavily on foreign investment, has faced all sorts of troubles.
Among some of the problems are supply chain disruptions and component suppliers as well sanctions imposed by Western countries meant to punish Russia for their invasion.
G/O Media may receive a commission
Eco-friendly, comfort-friendly
Their multi-occasion styles take you from the office, to dinner, to neighborhood errands, with a sugarcane-based foam bottom and slick recycled leather upper.
That invasion has sent shockwaves throughout the world of manufacturing —especially car manufacturing. Fuel price has also skyrocketed as a result of Russia’s invasion of Ukraine, only now beginning to return to some (sort of) normalcy.
