Fuel shortages? Russia sees doubling of electric car sales
Registrations of new battery-electric cars and plug-in hybrids more than doubled in Russia this summer compared to the previous year. This appears to be a result of Ukrainian counterattacks on Russia, which hit refineries and triggered fuel shortages.
Since Russia’s invasion of Ukraine began, the neighbouring country has defended itself — among other measures — with targeted attacks on Russian oil refineries. As a result, the supply of petrol and diesel to Russian filling stations has been severely disrupted. It is precisely this fuel shortage that may now have driven a sharp rise in sales of purely electric and plug-in hybrid cars, despite Russia’s historically challenging market conditions for electric cars, including its sparse charging network, vast distances, and harsh climate. In contrast, electric buses in the city’s capital have long since overcome these challenges, as Moscow has boasted Europe’s second-largest electric bus fleet for some time, as we reported in 2021.
Following Ukrainian counterattacks that forced some refineries to halt operations, Russia’s petrol production has recently fallen to just about 70 per cent of its usual domestic consumption, as reported by Reuters. Due to the shortages, Russian motorists have had to search for fuel for hours and queue at filling stations, as documented by press images from Russia. Conversely, by the end of June, the number of charging sessions at Rosatom’s public charging stations had already increased significantly.
Russia Sees 117.8 per cent increase
While the direct causal link cannot be definitively proven, the figures tell a compelling story: Sales of new electric cars and plug-in hybrid passenger vehicles reached 26,543 units between June and August of this year, according to analytics provider Autostat. In the same period last year, there were 12,187 plug-in vehicles sold. Sales have therefore more than doubled, with an increase of 117.80 per cent. Last year, electric cars and plug-in hybrids accounted for just 4.3 per cent of total car sales in Russia, Autostat reports.
The noticeable surge in demand in the Russian electric car market is almost exclusively being met by Chinese manufacturers, who are capitalising on the new market dynamics. Since European, American, Japanese, and South Korean automakers withdrew from the Russian market following Russia’s war of aggression against Ukraine and the comprehensive international sanctions imposed since 2022 — halting both exports and local production — brands from the People’s Republic of China are filling the void.
Chinese manufacturers benefit
Chinese new energy vehicle (NEV) brands such as Zeekr and Li Auto are particularly well-positioned, reaching urban buyers in centres like Moscow through official sales channels, parallel imports, or independent dealers. At the same time, state-directed local brands like Evolute or the revived Moskwa concern are entering the market by assembling and distributing Chinese models (including those from partners like Dongfeng or JAC) under their own names. One example is the compact electric SUV Evolute i-Joy, which is based on the Dongfeng Fengon E3. For assembly at the Evolute plant in Lipetsk, mostly CKD (completely knocked down) kits from Dongfeng are used. Buyers currently receive a subsidy of 35 per cent of the purchase price as part of a state support programme.
Incidentally, Ukraine has also been achieving strong electric vehicle sales for some time, with not only Chinese brands but also China-made models from the Volkswagen Group proving popular as grey imports.