Russia to drop emissions laws as car sales plummet

Russia is said to be dropping emissions regulations for new cars in an effort to shore up supply.

With most major car manufacturers having suspended production and exports to Russia in the wake of the Ukraine conflict, local newspaper Kommersant is citing sources familiar with the matter who say the Kremlin is allowing domestic carmakers to drop Euro 5 standard for new cars.

It’s understood a lack of supply of electronic control units from Germany company Bosch is largely to blame for the decision.

3

Locally-made catalytic converters will continue to be required by law.

The provisions only apply to Russian companies, with Chinese brand Haval – one of the few manufacturers still operating in the country – being excluded from the concessions.

According to the Association of European Business (AEB), via Kolesa, new-car sales in Russia are set to drop by as much as 50 per cent in 2022.

Dealerships across the nation sold a total of 1.67 million vehicles last year, but the AEB predicts the number will shrink to less than 850,000 – the lowest figure in more than a decade.

3

Sergey Tselikov, director of the analyst firm Avtostat, thinks the scenario may be even direr, suggesting Russia is headed for 750,000 in the current circumstances, adding that the number could be as low as 470,000, or as high as 980,000 if the situation improves.

Kolesa reported the Russian new-car market collapsed by 63 per cent in March 2022.