Russia’s car output decreased 68.9% on the year to 65,100 vehicles in January-February, according to figures released by the Economic Development Ministry.
The ministry attributed the decrease to a sharp decline in demand and difficulties for carmakers in taking out loans.
Of the total, output of domestic cars fell 80.3% on the year to 24,950 cars in January-February, while output of foreign-branded cars amounted to 40,150 cars in the period, down 51.5% on the year.
Russia’s truck output fell 78.9% on the year to 8,700 units in January-February, the ministry also said, attributing the decrease in part to poor leasing sales and difficulties taking out loans.
Russia’s car market this year has gone into reverse as it has been hit by economic and financial crisis.
Sales of new cars in Russia are projected to fall 19% on the year to 2.4m units in 2009, Martin Jahn, vice chairman of the AEB’s Automobile Manufacturers Committee and general manager of Volkswagen Group’s Russian subsidiary, said in January.
Other analysts have said the market could fall by as much as 50% this year.