Putin calls for price controls as Russian car sales crash to record low

(This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine.) (Recasts with Putin comments and wider context)

MOSCOW, Nov 16 (Reuters) - President Vladimir Putin urged the Russian government on Wednesday to control car prices, as one industry head said Western sanctions could send annual sales crashing to below 1 million for the first time since records began.

Auto sales have fallen over 60% so far this year, and may end up being less than a quarter of what they were a decade ago, according to Maxim Sokolov, head of Russia's top carmaker Avtovaz.

Some of this year's drop is due to the pullout of foreign carmakers such as Renault RENA.PA and Mercedes-Benz MBGn.DE and a collapse in demand due to a mass mobilisation for the Ukraine conflict.

But much is also due to falling living standards and higher prices, as well as the difficulty of securing foreign-made components after the imposition of a barrage of sanctions by Western countries in response to Russia's military campaign in Ukraine; the latest Lada model has had to be produced without airbags or anti-lock brakes.

Speaking with top officials, Putin acknowledged that the situation was "not easy", and asked the government to look at making cars more affordable, suggesting that prices were being raised unfairly.

"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.

"I hope that both you and the Federal Antimonopoly Service are doing this all the time."


Trade Minister Denis Manturov told Putin that assembly lines were being ramped up at Russia's domestic carmakers - including Avtovaz AVAZI.MM , maker of the Lada and a Renault subsidiary until May, GAZ GAZA.MM , Kamaz KMAZ.MM and UAZ SVAV.MM .

Painting a rosy picture, he said production of the Moskvich ("Muscovite"), a Soviet-era brand that fell into obscurity after the fall of the Soviet Union - would resume by the end of the month, in a plant taken over from Renault.

He also noted, however, that the market had been supported by loans and subsidies for manufacturers, and said 55,000 vehicles had been sold with government support this year.

Manturov also proposed extending preferential car financing to military personnel, adding: "Today we can speak of an emerging trend towards a recovery of the industry."

Sokolov was markedly less optimistic.

He said the number of cars sold in Russia would this year fall below 1 million, a first in modern history.

"Last year it was a little over 1.6 (million); God willing, this year it will be 670,000-700,000," he said at the annual Transport Week conference.

This compares to sales of around 3 million units a year as recently as 2012 - before a plunge induced in part by a previous wave of sanctions in 2014, after Russia unilaterally annexed Crimea from Ukraine.

"Indeed, Avtovaz, as well as the entire automotive industry of the Russian Federation, has probably found itself in the most difficult situation this year," Sokolov said.

"We have never before faced such a large-scale and comprehensive challenge."

FACTBOX-Companies sell their businesses in Russia

INSIGHT-In isolated Russia, a tale of two economies

BREAKINGVIEWS-Renault’s Russia exit plans mix logic and delusion

BREAKINGVIEWS-Russia’s economy will soon be unrecognisable

Reporting by Caleb Davis and Gleb Stolyarov; Editing by Kevin Liffey

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。