The Russian national statistics agency RosStat has stated that the country's passenger car production fell by 21.7% year on year (y/y) in April to 96,000 units, according to a Skrin newswire report. This was actually a slight moderation on the rate of decline in the first four months of the year, when production fell by 25.1% y/y to 345,000 units.
Significance: The Russian passenger car industry has been hit by the current turbulent macroeconomic conditions, with a 15.4% y/y decline in sales during the first four months of the year to 409,051 units. With demand at a very low point in the cycle many OEMs have halted or suspended production. Lada has slowed production of the Kalina and Priora lines to just three days a week at the giant Togliatti plant, although the Priora will eventually be completely superseded by the new Vesta. However, there are signs from some of the foreign OEMs that they are beginning to prepare for the expected recovery in the market which is due to start on a modest basis next year. Renault's Moscow facility launching serial production of the new crossover, the Russian market version of the Renault Kaptur. Volkswagen (VW) has introduced weekend working from April to September in connection with the planning of additional production volumes.
