Putin wants magical fix to cratered car market: Putin says government must support domestic car industry, wants new plan soon

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LONDON, June 16 (Reuters) - Russian President Vladimir Putin ordered his government on Thursday to quickly come up with new measures to support the domestic car industry, which has seen sales crater since the invasion of Ukraine.

Amid a crunch on demand from Russian buyers and severe logistics problems as a result of Western sanctions, car sales slumped a record 83.5% in May, according to Association of European Businesses data.“I would like to ask the government to tell us in detail what swift measures it is taking to support the auto industry and stabilise the internal market,” Putin said in a meeting with officials broadcast on state TV.

Industry and Trade Minister Denis Manturov said Moscow would allocate 20.7 billion roubles this year to support demand for cars, Interfax reported. “This is what should be implemented in the near future in order to stimulate the market for precisely those products that are freely produced and can be supplied to our consumers,” the agency cited him as saying.

In recent weeks a string of officials have warned about a possible demand slump that could accentuate the economic crisis, already expected to be the worst in at least two decades.

 

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