German Premium Carmakers Decline Globally but Surge in Russia Despite Market Slump

Global sales of Germany's four leading premium automotive brands continued to decline in 2025, but the Russian market stood out as a rare exception. According to analyst Sergey Tselikov, all members of the German premium quartet demonstrated solid growth in Russia despite a 16 percent contraction of the country's overall car market.

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"Moreover, this growth occurred against the backdrop of a 16 percent decline in the overall Russian car market,” Tselikov wrote on his Telegram channel.

Global Sales Decline Among German Premium Brands

On the global stage, all four brands posted weaker results compared to the previous year. BMW sold 2.17 million vehicles worldwide in 2025, representing a 1.4 percent decline. Mercedes-Benz recorded a sharper drop, with passenger car sales falling by 9 percent to 1.8 million units. Audi ended the year with global sales of 1.62 million vehicles, down 2.9 percent year-on-year. Porsche saw the steepest contraction among the group, with worldwide sales decreasing by 10 percent to nearly 280,000 units. These figures reflect ongoing pressure on the global premium segment, driven by slowing demand, rising costs, and structural changes in key markets.

Contrasting Trend in the Russian Market

In Russia, however, the picture was markedly different. BMW increased its sales by 42 percent, delivering 16,742 vehicles. Mercedes-Benz sold 9,430 cars, up 35 percent compared to the previous year. Audi posted one of the strongest growth rates, with sales rising 43 percent to 4,556 units. Porsche also expanded its presence, increasing deliveries by 12 percent to 2,325 vehicles. Despite these gains, Tselikov stressed that Russia remains a marginal market for German premium manufacturers.

"Nevertheless, Russia will not save German premium brands. Its share in the total sales volume of this quartet is less than one percent — just 0.56 percent,” the analyst noted.

Regulatory Changes and Future Outlook

According to Tselikov, the positive trend is unlikely to last. Changes to Russia's vehicle recycling fee rules, which came into force in December 2025, are expected to put downward pressure on sales in the premium segment. The analyst pointed out that nearly 99 percent of vehicles sold by these brands in Russia are equipped with engines producing more than 160 horsepower, making them particularly vulnerable to higher fees. As a result, the current growth may prove temporary, driven by purchases made ahead of the regulatory shift.

A Temporary Bright Spot

The divergence between global and Russian sales highlights how localized factors can temporarily offset broader industry trends. However, experts caution that without structural support or sustained demand, Russia's contribution to German premium brands will remain limited in scale and strategic importance.