In the first months of 2025, Russia produced 21,800 freight wagons. That is a reduction of 4.4% compared to the same period in 2024. April in particular brought disappointing results for the Russian rolling stock industry: production crashed by around a third.
January saw 5,400 wagons leave the factories, which was nearly 25% higher year-on-year. But, say Russian media, this was an anomaly. February and March fell below 2024’s monthly average.
And so overall, in Q1 wagon production was up by only 2%. The big hit came in April, when production dropped by around a third. Those numbers are disappointing but expected for the Russian rail sector. Local experts predict that production may fall to 50,000 units in 2025. In 2024, Russia produced nearly 75,000 wagons – among the most productive years in recent history.
Wagon production breakdown over 4 months:
What’s behind the decline?
The underlying reasons for the decline are various. For one, very few Russian wagons are being retired. Then there is also the high interest rate, which prevents companies from investing.
Third, infrastructure is working at full capacity, so there is just not enough space for more rolling stock. And lastly, Russian Railways (RZD) is actively trying to get rid of wagons that it considers to be excessive on the tracks. In other words, there is little room for more rolling stock in RZD’s view.