Robert Besser
21 Nov 2022, 18:51 GMT+10
MOSCOW, Russia: As Western sanctions are sending annual car sales in Russia crashing to below 1 million for the first time since records began being kept, President Vladimir Putin has urged the Russian government to control car prices.
Maxim Sokolov, head of Russia's top carmaker, Avtovaz, said so far this year, car sales have fallen over 60 percent and may end up being less than one-quarter of the figure from a decade ago.
This year's drop is mainly due to a collapse in demand following the mobilization for the invasion of Ukraine, as well as the pullout from Russia of foreign carmakers, such as Renault and Mercedes-Benz.
Putin told top officials that the situation was "not easy," and asked the government to help make cars more affordable.
"I would like to draw your attention to the need for constant control over pricing, so that under these difficulties, of which we are all aware, including logistics, no one abuses or unreasonably raises the prices of road vehicles," he said.
Meanwhile, Trade Minister Denis Manturov told Putin that assembly lines were being ramped up at Russia's domestic carmakers - including Avtovaz, maker of the Lada and once a Renault subsidiary, along with GAZ, Kamaz and UAZ.
Also, the Muscovite, a Soviet-era brand that fell into obscurity after the fall of the Soviet Union, is to resume production by the end of the month, in a plant taken over from Renault, he said.
However, Sokolov noted that the number of cars sold in Russia this year will fall below 1 million for the first time.
"Indeed, Avtovaz, as well as the entire automotive industry of the Russian Federation, has probably found itself in the most difficult situation this year. We have never before faced such a large-scale and comprehensive challenge," Sokolov said.
Get a daily dose of Manufacturing Mirror news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Manufacturing Mirror.
More InformationMumbai (Maharashtra) [India], September 30 (ANI): Actor Aishwarya Rai Bachchan was spotted at the Mumbai airport on Friday night with ...
Geneva [Switzerland], September 29 (ANI): Human rights activists from South Asia, Japan and Africa discussed the implications of China's expansionist ...
The many ways in which money is exchanged for access to people with political power in Washington will be in ...
New Delhi [India], September 28 (ANI): The Delhi High Court has modified the Look Out Circular (LOC) issued under the ...
Brampton [Canada], September 28 (ANI): Indian diaspora in Canada have termed as"extremely irresponsible" the allegations against India made by Canadian ...
New York [US], September 28 (ANI): A prominent Indian-American businessman in New York, Sant Singh Chatwal said that more than ...
RIVERSIDE COUNTY, California: In his opening statement this week in the first U.S. trial over allegations that a car autopilot ...
JEDDAH, Saudi Arabia: As part of Riyadh's efforts to further Saudi Arabia's electrification drive, electric vehicle (EV) maker Lucid announced ...
WASHINGTON D.C. Due to internal brake fluid leaks that can cause an electrical short and could lead to engine fires, ...
DEARBORN, Michigan: Due to concerns about its ability to operate competitively while it is locked in broader union contract negotiations, ...
YOKOHAMA, Japan: Joining a growing number of carmakers that are shifting to electric vehicles (EV) by the end of the ...
DETROIT, Michigan: This week, the United Auto Workers (UAW) expanded its members' strike to include dealers selling and servicing General ...