Russian Automotive Market Through 2029: Forecasts, Risks and Growth Opportunities

On July 30, an industry discussion titled “Russian Automotive Market Development Trends for 2027–2029” was held at VDNH as part of the second large-scale ProDvijenie automotive festival. Key industry players, senior executives from automakers and dealerships, as well as representatives of industry associations discussed production prospects, government support measures, and changes in consumer behavior expected over the next three years. The session was moderated by renowned automotive journalist, industry expert, and Radio Russia columnist Igor Morzharetto.

The discussion brought together leading market experts, including Oleg Barinov, Executive Director of the ROAD Association; Dmitry Petrov, First Deputy CEO of NexTouch; Denis Zagarin, Head of the NAMI Automotive Research Center; Sergey Udalov, Executive Director of the AUTOSTAT analytical agency; Vasily Chebotarev, Head of Special Projects at EVOLUTE; and others.

The speakers discussed key issues related to the development of automotive production in Russia, possible government incentives, as well as new trends in sales and distribution that are expected to shape the market in the medium term. Particular attention was paid to how automakers are adapting to changing business conditions and searching for new growth opportunities.

A New Format for Business Events

The session participants agreed that the role of exhibition venues is undergoing a major transformation. As Pyotr Khachaturyan, General Director of Auto + Automechanika Moscow, noted, exhibitions are no longer simply places to showcase new products:

“They are becoming communication hubs and a new ecosystem where ideas emerge, partnerships begin, and strategic decisions are discussed. We are seeing growing demand for open communication, collaborative discussion of solutions, strategy development, and direct feedback. In the coming years, it will be particularly important to develop this format of interaction, because this is where the foundation is laid not only for the sustainable development of the industry but also for strengthening our country’s technological sovereignty.”

Pyotr Khachaturyan also emphasized that the participation of experts and partners of Auto + Automechanika Moscow, with the support of the Roscongress Foundation, in the business program of the ProDvijenie automotive festival helped expand business contacts and strengthen the exchange of expertise:

“We would like to thank the VDNH management and team for the high level of organization and for creating an excellent atmosphere for large-scale industry events. This is how a format emerges in which the business agenda is combined with a festive program, and professional dialogue with informal networking.”

Automotive Market Forecast Through 2029

Market figures and forecasts were among the most anticipated parts of the discussion. Sergey Udalov, Executive Director of the AUTOSTAT analytical agency, presented the baseline scenario for market development over the next three years:

“The market is highly volatile, and its participants need to respond quickly to changes in geopolitics, the economy, and consumer demand. We regularly revise our market development scenarios, and under the current baseline scenario, we expect new passenger car sales to reach 1.33–1.37 million units in 2026–2027. A downward correction is possible in 2028 amid an expected slowdown in economic growth and household incomes, while by 2029 we forecast a return to growth, with sales ranging from 1.2 to 1.5 million units. The decisive factors will be the geopolitical situation, overall economic dynamics, the key interest rate, household incomes, and the availability of car loans.”

A Systematic Approach to Regulation

Oleg Barinov, Executive Director of the ROAD Association, emphasized the need to move from individual support measures toward a unified regulatory model:

“Today, the industry is facing a set of interconnected challenges: cars have become less affordable, 72% of vehicles in the Russian fleet are more than 10 years old, and the average vehicle age has reached 15.5 years. At the same time, the rules governing vehicle sales, servicing, and disposal remain fragmented. Support measures should become part of a unified system regulating the entire vehicle life cycle.”

Oleg Barinov proposed supplementing effective preferential car loan and leasing programs with a legislative mechanism for vehicle fleet renewal: the voluntary scrapping of technically outdated vehicles with compensation provided toward the purchase of a new Russian-made car. According to him, transparent vehicle histories, unified service standards, and balanced responsibility among all market participants are also needed:

“All these measures will contribute to the development of a transparent and well-regulated automotive market and protect the interests of responsible consumers and dealers.”

A New Chapter in VDNH’s History

During the business program, Timur Zeldich, Head of the VDNH EXPO Congress and Exhibition Center, presented the new complex scheduled to open this year and spoke about its concept and extensive capabilities for hosting business events of various formats and scales. The new center is positioned as the country’s largest congress venue, seamlessly combining the historical heritage of VDNH with advanced technologies.

The business event held as part of the ProDvijenie automotive festival demonstrated how VDNH is reviving its historic role by creating a distinctive format that combines professional dialogue, an extensive exhibition, and a vibrant event program.


Source of information: Auto + Automechanika Moscow

Photo credit: VDNH EXPO

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