Sales of new cars in Russia have fallen by more than 60%.

Auto sales have been down since Moscow sent troops to Ukraine in February. In response, Western countries imposed sanctions on Russia which, among other things, made it more difficult to access the components. Several foreign manufacturers have also suspended operations in Russia. According to analysts, the industry is also being hit hard by limited demand across the economy amid falling living standards and rising inflation.

In early March, Škoda Auto announced that, due to the Russian invasion of Ukraine, it would suspend production at its Russian plants in Kaluga and Nizhny Novgorod and stop exporting cars to Russia. Last year, Russia was the second largest market for it.

The AEB report showed that Škoda car sales fell by 90% to 524 cars in November. From January to November it decreased by 78%. The Škoda Rapid model was among the 25 best-selling models in November and in 11 months of the year it ranks 12th.

In November, Russia began production of the revamped Soviet-era car brand Moskvich at a plant near Moscow that has been abandoned by French automaker Renault. Sources told Reuters that Chinese company JAC’s design, construction and platform were used in the car’s production, with parts supplied from China and assembled only in Russia.

After the start of the conflict in Ukraine, the business association AEB has updated its forecast for new car sales in Russia for this year and now expects a decline of about 50% instead of the initially expected growth of 3.3 %. Last year, auto sales in the country grew by 4.3%. AEB represents European companies operating in Russia.