Russian automotive industry has acknowledged its lack of viability
russia’s largest passenger car manufacturer, avtovaz, is preparing to shift to a reduced four-day workweek.
▫️The company attributes this decision to “unfavorable trends in the auto market,” a credit crisis, and “dumping by imported brands,” primarily referring to Chinese manufacturers.
While russian propaganda portrays avtovaz as a champion of import substitution, staging grand presentations of new Lada models at international economic forums, the reality is that russia’s automotive industry is sliding toward collapse under the strain of war and sanctions, constantly relying on state support.
Sales of russian-made vehicles continue to decline not only due to their inability to compete with Chinese automakers, but also because of falling household incomes and the inaccessibility of credit — direct consequences of russia’s war against Ukraine.
