The industry has been struggling with the impact of Western sanctions on Moscow.
Several Russian auto manufacturers suspended production last year as the industry struggled to source parts and establish new supply chains following the imposition of the sanctions. High-profile Western auto manufacturers such as Renault also left the market, further impacting the industry.
Prices for cars have also risen significantly in Russia, which remains a deterrent for a sales rebound. Retail sales slumped across the Russian economy in 2022 amid a recession, price instability, and heightened uncertainty.
The AEB forecasted a 12% increase in sales for 2023 to around 770,000 vehicles. Alexey Kalitsev, the head of the AEB's automobile committee, also predicted that 5-7 new car brands could appear on the Russian market this year.