According to Reuters news on August 25, Russia's leading automaker Volga announced on the same day that due to the sluggish demand in the Russian auto market, it will reduce the production of its flagship Rada in the next three months, reducing production by 25,000. .
Volga is jointly controlled by the Renault-Nissan Alliance. In July, its Lada vehicle production was 47,100 units, and the total output of Renault and Nissan vehicles was 12,100 units. Volga issued a statement saying that in order to better control production and sales and inventory, it made a decision to cut production.
GM also announced last week that it will reduce production at its St. Petersburg plant and will adjust its expansion plans in Russia.
As the Russian economy slows this year, consumers are suppressing the purchase of bulk commodities. Western countries’ sanctions on the Ukrainian crisis have further exacerbated consumer pressure. Car sales continue to decline. Sales in July fell 23% year-on-year, higher than the 17% decline in June. According to data from the European Business Association (AEB), sales of Rada Motors in July fell 25% year-on-year to 28,014 units.
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