Russia's Avtovaz Announced A Shorter Work Week

Sales of passenger cars in the Russian Federation collapsed.

Russia's largest carmaker Avtovaz will consider cutting the work week in the fall due to the state of the auto market, Reuters reported, citing a company statement.

Avtovaz reported in late June that it expects the Russian passenger car market to fall 25% to 1.1 million units this year, while a new forecast by the Association of European Businesses also suggests a 24% drop.

The automaker may switch to a four-day work week instead of a five-day work week due to a decline in sales caused by a high key rate and a large number of imported cars on the market, according to the report.

"We are talking about a high key rate and the regulator's tougher requirements to borrowers on car loans. In addition, a significant number of imported cars have been imported into Russia (mostly in 2024s), with imported brands pursuing a policy of price dumping."

Autovaz estimates that the stock of unsold imported cars now stands at around 400,000.

If the decision is made, the working week will be shortened from September 29, the report said.

"The final decision on the introduction of a part-time four-day working week will be made after analyzing market trends and economic factors, including the level of the key rate and the availability of credit products," the report said.

According to the analytical agency Avtostat, the car market shrank by 26.3% to 530,375 units in the first half of the year, with the decline accelerating toward the end of the half-year. Avtovaz's sales fell by 25% to 155,481 units.

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