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 Knoxville Times 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 Knoxville Times.
More InformationSACRAMENTO, California: Fast food workers will now receive $20 per hour in California, after the governor signed a fast food ...
BEIJING, China: In a deal worth US$10 billion at list prices this week, state-owned carrier China Eastern Airlines announced that ...
BEIJING, China: This week, China Evergrande Group said its founder and chairman, Hui Ka Yan, is being investigated over suspected ...
RIVERSIDE COUNTY, California: In his opening statement this week in the first U.S. trial over allegations that a car autopilot ...
SEATTLE, Washington: As part of Washington's efforts to stop Big Tech from monopolizing the most lucrative parts of the internet, ...
JEDDAH, Saudi Arabia: As part of Riyadh's efforts to further Saudi Arabia's electrification drive, electric vehicle (EV) maker Lucid announced ...
TALLAHASSEE, Florida: The Florida Lottery said this week that the second-largest lottery winner in U.S. history has come forward to ...
LONDON, UK: This week, the Global Financial Centers index showed that New York remains the world's leading financial center, with ...
KAOHSIUNG, Taiwan: In a significant milestone for its defense capabilities, Taiwan has unveiled its first domestically developed submarine. Although it ...
HONIARA, Solomon Islands: Prime Minister Manasseh Sogavare revealed that he opted out of a Pacific Islands leaders' summit at the ...
SACRAMENTO, California: Intending to raise some US$160 million per year to help prevent gun violence, California Governor Gavin Newsom signed ...
MANILA, The Philippines: The Philippines remains steadfast in its resolve not to yield to Chinese efforts to obstruct its fishermen ...