Published: January 16, 2024 5:14 am
Author: RT
The industry has rebounded after a sharp downturn in 2022
Russian factories produced more than 700,000 vehicles last year in what has been a rapid recovery from Western sanctions, Russian Deputy Prime Minister Denis Manturov announced on Monday.
Car production in Russia rose by 16% in 2023, with over 720,000 automobiles rolled off the assembly line, according to Manturov, whose remit includes industry and trade.
The production and sales figures represent a significant increase compared to 2022, a year marred by Western sanctions that severely impacted Russia’s automobile sector.
In 2022, Russia experienced a staggering 67% plunge in car production, with sales slumping by nearly 60% and coming in even below 2020, when Covid-19 restrictions meant that many dealerships were closed for an extended period of time.
The industry, which had been heavily reliant on foreign investment and equipment, was hit by an exodus of international manufacturers due to Western sanctions. A number of US, European and Japanese automakers either left the country or suspended deliveries of cars and components, halting their local production indefinitely.
READ MORE: New car sales soar in Russia – data
However, domestic manufacturers have started picking up the slack. Among the factors contributing to the recovery were government measures aimed at boosting demand for domestic cars, according to Manturov.
New passenger car sales in Russia skyrocketed in 2023, data from the analytical agency Autostat showed earlier this month. For the year, 1.06 million new cars were sold in the country, a 69% increase against 2022. The Lada remained the top-selling brand, with a market share of just over 30%, the agency said.
The soaring production and sales have provided a boost to the country’s economy, providing jobs and promoting technological growth.
For more stories on economy & finance visit RT’s business section
