The Ministry of Industry and Commerce expects a shrinkage of less than 5-7% in car production in 2016

The Ministry of Industry and Commerce expects a shrinkage of less than 5-7% in car production in 2016

Autostat – The shrinkage in car production in 2016 may remain below the previously predicted level of 5-7%, as stated by the deputy director of the Transport and Special Vehicles Department of Ministry of Industry and Commerce: Vsevolod Babushkin.

The Ministry had previously predicted a shrinkage between 5-7% in Russian car production for 2016. “The volumes are more or less the same, however we look forward to more optimistic figures now” – he added.

The Ministry of Industry has not revised its annual forecast on car production yet, said Babushkin. According to Babushkin, this is due to the fact that the first half of the year is not over yet and the first quarter was not very revealing. “These are just numbers, however there is optimism in the eyes of the manufacturers” – concluded Vsevolod Babushkin, as quoted by TASS.

As stated by the minister of industry and commerce: Denis Manturov earlier, the main task of 2016 is to prevent any further slowdown in passenger car production and maintain last year’s sales figures.

1.213 million cars and 131,000 trucks have been manufactured in Russia in 2015. The shrinkage rates are 27.7% and 14.7% respectively. The ministry has taken a series of measures aimed at supporting automobile sales, due to the crisis conditions and the worsening situation in automotive industry as a result. In particular, the ministry will partly reimburse the costs of manufacturers in areas such as: modernisation of production, supporting jobs etc. In addition, the ministry will stimulate the demand on automotive, through utilisation programmes, trade-ins, preferential leasing and preferential car loans.