Avtotor plans to cut the car production by 40% in 2020

Avtotor plans to cut the car production by 40% in 2020


RBK.- Avtotor plans to make an average cut of 40% in automobile production in 2020. The relevant statement has been made by the founder of the company Vladimir Sherbakov, during an interview with the RBK television channel.

“In 2020, the overall decline will happen in the first half of the year, by somewhere around 30%. The shrinkage rate will reach 50% during the second half of the year, making the annual average 40%. We’re establishing our plans around these figures” – as emphasised by the head of Avtotor.

Sherbakov has stated that the factory will operate at a slower pace in May-June period, due to the fact that the production will be limited to the components received prior to the Coronavirus.

Sherbakov is of the opinion that the worldwide change in customer behaviour is the main problem. The uncertainty due to the pandemic prevents the clients from making major purchases, including automobiles.

The head of Avtotor has added that unless Russia abolishes the recently accepted conditions for the reimbursement of utilisation fees depending on the level of localisation, the problems faced by the company will continue into the next year. The import of cars will be cheaper than local production.

“The proposal is to wait out this moment, by staying away from gigantic investments. The main focus should be primarily on the development of new products and their immediate release to the market. I can not name a product for the moment. Hydrogen electric motor or maybe a new generation of diesel engines, which would be very beneficial for our country” – Sherbakov said.