LONDON – Russian President Vladimir Putin on Thursday ordered his government to quickly introduce new measures to support the domestic car industry, which has seen a decline in sales since during the invasion of Ukraine.
According to data from the Association of European Businesses (AEB), amid limited demand from Russian buyers and severe logistical problems caused by Western sanctions, car sales have fallen sharply. fell a record 83.5% in May, according to the European Association of Business (AEB) data.
“I would like to ask the government to tell us in detail what swift measures it is taking to support the auto industry and stabilize the domestic market,” Putin said during a meeting with officials. broadcast on state television.
Interfax news agency quoted him as saying that the government should come up with an updated plan by September 1.
Industry and Trade Minister Denis Manturov said Moscow would allocate 20.7 billion rubles ($377 million) this year to support demand for cars, Interfax reported.
About 10.2 billion rubles will be spent to continue car loan with the remainder split between support for the offer lease as well as discounts on electric and gasoline-powered vehicles.
“This is what needs to be done in the near future to stimulate the market for exactly what products are freely produced and can be offered to our consumers,” the agency quoted him as saying. speak.
According to the Russian statistical agency Rosstat car price has increased by nearly 50% since the start of the year, denting demand in a country where household incomes are falling while inflation hovers near a 20-year high.
In recent weeks, a flurry of officials have warned of a drop in demand that could trigger an economic crisis, which has been forecast to be the worst in at least two decades.
Despite the high import substitution dynamics, Russia’s auto industry remains highly dependent on foreign investment and equipment.
Lada Avtovaz, Russia’s largest car manufacturer, has stopped production for more than two months citing a lack of electronic parts.
French car giant Renault In May, an agreement was reached to sell the majority of its shares in Avtovaz to a Russian scientific institute, allegedly for a symbolic amount of only one ruble, with a buyback option in 6 years.
