Economic sanctions as the reasons for the destabilization of the automotive market in Russia

Abstract

Within the framework of this article, the features of the development of the Russian automotive market in the conditions of sanctions pressure from a number of states are analyzed. According to the author, the automotive industry is important in the context of the development of the real sector of the economy. In this regard, it is largely subject to state regulation. Thus, the main role of the state is to determine the extent to which foreign companies enter the domestic market, including the construction of manufacturing enterprises and the creation of various types of support for domestic companies. The automotive industry has undergone particular changes over the past year due to the imposition of sanctions after the start of the NWO. A large number of companies also either completely left the market or suspended their activities, which led to an increase in prices for cars remaining with dealers, because new cars are not supplied and dealers, due to low supply, cannot meet demand. However, despite this fact, it is impossible to say that the sanctions had only a negative impact on the automotive industry. For example, the author notes that in 2022 there was an increase in demand for cars from Chinese manufacturers such as Chery, Geely, Haval, which, in turn, has a positive effect on trade relations between Russia and China. In addition, the article provides statistical data on the dynamics of prices for the most popular cars in Russia, as well as for BMW models after February 24th. The final part of the article is devoted to the conclusions formulated by the author regarding the impact of sanctions on the prospects for the Russian automotive market.