22 December 2002 23:55
Russia expected to produce 4% fewer cars in 2002
MOSCOW. Dec 23 (Interfax) - Russia looks like producing 980,000- 985,000 cars in 2002, down 4% from 1.022 million in
2001.
The market is over-saturated, and companies like Avtovaz will produce less, and the GAZ auto works intends to halt
production of Volga cars temporarily, Alexander Kovrigin, deputy general director of ASM-Holding, the umbrella company
for Russian and CIS auto makers, told Interfax.
The market is over-saturated because some 500,000 imported second- hand cars will be sold in Russia this year,
Kovrigin said.
The State Customs Committee has said 381,500 imported second-hand cars were brought into Russia in 2001.
More were brought into the country this year because rumors that import duties on these cars will be imposed had been
circulating all year. But only in October did the government finally impose duties on second-hand cars more than seven
years old, Kovrigin said.
Other theories are that the severe flooding in southern Russia affected demand for cars.
Kovrigin said the first half of 2003 would be hard for the Russian car industry as well. The large number of cars
imported in 2002 will still have its effect, and in any case imports of cars between three and seven years old, for
which duties have not altered, will be significant.
But it is thought most foreign producers will increase new car sales in Russia in 2002. [RU ASIA EUROPE EEU EMRG AUT
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