Minus 83%! This is the fall in sales of new cars in Russia in May. It is very little compared to the victims of the war, but the automobile is a key economic sector for the country and its population.
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The number is enough to raise awareness of the problem. In May, only 24,200 new cars were sold on the Russian market. We might as well speak of an anemic market. In addition to the inflation that is hitting consumers, the situation is explained above all by the Western sanctions decided against Moscow, which deprive the industry of spare parts. Beyond sales, it is the whole of automobile production which is affected, one of the Russian sectors which is suffering the most.
For the West, the automobile industry can also be a weapon, even before giving up oil deliveries. Everyone is focusing on the timetable around which Europe will gradually cut off its imports of crude oil or Russian gas. But there is another parade: industrial blockage. As of February 24 – the date of entry of Russian troops into Ukraine – many producers of electronic components immediately cut off their deliveries to this powerful national industry.
Another example: Renault, which helped turn around the Russian automobile giant Avtovaz, withdrew from its partnership. As a result, the tens of thousands of employees of the leading car producer in Russia are, for the moment, on paid leave, and most of the production is at a standstill.
Because of the war, the instability of the national currency adds to inflation. This instability of the ruble reduces the possibilities for Russians to buy imported products, including cars, even if this is not their priority today.
In the 2000s, the world’s major car manufacturers invested heavily in Russia. Their withdrawal today presents Vladimir Putin with a major risk: that of the destruction of industrial jobs, of weighing on wages and purchasing power, with the possible chain reactions of the population.