The Soviet Union possessed a large automotive industry. In late 1987, the industry produced 2 million cars, satisfying 45% of the domestic demand. However, the quality of production was not very high, and after the dissolution of the Soviet Union the industry faced a crisis due to competitive foreign imports. Japanese brands overtook the lower-end Ladas; on the high-end sector, Volga sales dropped in favor of German-built Mercedes-Benz and BMWs. By 1993, total output was down 14% compared to 1990 levels.
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