Moscow: Russia's new car sales totaled 546,000 in the first half of the year, marking a 27% decrease on an annual basis, as reported by the country's Industry and Trade Ministry on Thursday. The ministry also highlighted a significant decline in June, with new car sales down 29% year-on-year.

According to Anadolu Agency, the Association of European Businesses (AEB) projects a 24% decrease in car sales for the entire year, estimating total sales to reach 1.25 million units. Anton Alikhanov, Russia's industry and trade minister, noted on Wednesday that the country's automotive sector is experiencing challenges, largely due to high interest rates.

The downturn in car sales is linked to the geopolitical tensions following the 2022 onset of the war in Ukraine, which led to a mass withdrawal of Western companies from Russia. This exodus included many Western auto manufacturers that were previously dominant in the Russian market, causing a significant disruption in the country's automotive industry.