Russian Auto Market Sees Broad Gains in Early 2026 as Chinese Brands Adjust Prices

Starting January 2026, Russia’s automotive market has entered a broad wave of price hikes, with more than 30 brands collectively raising their official retail prices in the first half of the month—covering passenger cars, commercial vehicles, and new energy models. Chinese brands have seen particularly notable adjustments: JAC increased prices across its entire lineup by 1.5%–2.1%; the Li Auto L7 saw a price increase of 435,000 rubles; and the Hongqi H9 experienced a maximum price hike of 21%. The primary drivers behind this round of price increases include higher end-of-life vehicle recycling fees, exchange rate fluctuations, and rising supply chain costs—factors that especially impact imported brands lacking localized production. Despite declining sales—new vehicle sales in 2025 totaled 1.326 million units, down 15.6% year-over-year—market competition has intensified. Domestic brand LADA is accelerating production resumption, targeting sales of 400,000 units in 2026 and benefiting from government policy support. Meanwhile, multinational automakers are re-entering the market through joint R&D initiatives or small-batch imports. Chinese brands risk losing their current 52% market share unless they accelerate localization of production.