Vladimir Putin has ordered the Russian government to propose new measures to support carmakers. The latest figures show the collapse of car sales in Russia after the sanctions imposed on it due to the invasion of Ukraine.
In May, the decline was a record 83.5 percent.
According to the Russian statistical agency, car prices have jumped by 50 percent since the beginning of the year. This has significantly reduced demand as household incomes have fallen and inflation is at its peak.
“Although foreign partners of Russian carmakers have had long-term commitments, they have either cut off supplies or announced plans to leave the Russian market altogether.
It is clear that this step will drastically affect the production of Russian cars. We already see this happening.
Production by Russian carmakers was three times lower in March on an annual basis. And in April even five times lower.
“I want to emphasize once again that the situation is not easy – you know very well,” said Vladimir Putin.
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