Auto loan volumes in Omsk have experienced a significant decrease, dropping by a factor of two.
Auto loan issuance in Russia experienced a substantial decline in April 2025, with the national volume nearly halved compared to the same month in 2024. According to the National Bureau of Credit Histories (NBCH), the total value of auto loans issued in April 2025 amounted to 100.6 billion rubles, representing a 49% reduction from the previous year.
The number of auto loans issued in April 2025 also decreased significantly, dropping by 43.9% compared to the same period in 2024. Specifically, 79,700 auto loans were issued in April 2025.
Regional data shows that the steepest decline in auto loan issuance was observed in the Krasnoyarsk Territory (-58.4%), followed by Tula (-56.0%), Rostov (-54.2%), Omsk (-53.9%), and Novosibirsk (-53.7%).
Alexei Volkov, Director of Marketing at NBCH, attributed the significant decline in auto loan issuance in the second half of 2024 to an increase in market interest rates, the collection of recycling fees, and the introduction of macroprudential restrictions on issuing auto loans to citizens with high debt-to-income ratios (over 50%). According to Mr. Volkov, these factors have made auto loans less accessible to a substantial portion of the population.
In Moscow, the largest volume of auto loans was issued in Russia's regions in April 2025, amounting to 9.31 billion rubles.
The decline in auto loan issuance can be attributed to a confluence of economic and market factors, including increased interest rates, economic uncertainty, inflation, reduced demand for vehicles, and regional economic disparities. Businesses and consumers have been affected by high interest rates, as these have made auto loans significantly less affordable. Furthermore, the broader downturn in the Russian automotive sector, as well as a notable drop in vehicle demand due to economic pressure and sanctions, have also contributed to the reduction in auto loan issuance.
Regions with lower economic resilience or greater dependency on industries severely impacted by the downturn, such as those with significant exposure to freight and transportation sectors, have experienced the steepest declines in loan issuance.
I'm not sure if the decline in auto loan issuance can be entirely attributed to the factors within the auto industry alone. The decrease might also be due to the impacts on finance and transportation sectors, considering the economic uncertainty, increased interest rates, and reduced demand for vehicles affecting the broader population and businesses.
