MOSCOW

Russia’s new car sales totaled 546,000 first half of the year, down 27% on an annual basis, a report from the country's Industry and Trade Ministry said Thursday.

The number of new cars sold in Russia fell 29% year-on-year in June alone, the ministry statement said.

The Russian-based Association of European Businesses (AEB) said car sales are expected to fall 24% this year, totaling 1.25 million units.

Anton Alikhanov, the industry and trade minister, said on Wednesday that the country’s auto sector is going through a difficult time amid high interest rates.

The 2022 start of the war in Ukraine triggered an exodus of Western companies from Russia.

Car sales in the heavily sanctioned country came to a standstill after Western auto firms, once market leaders in Russia, left the country.

Russia’s car sales saw some recovery with a rise in exports of Chinese cars and production by domestic manufacturers.