**Russian Car Market to Decline**
Avtovaz, Russia‘s largest carmaker, predicts a 21-30% decline in new car and light commercial vehicle sales by 2025. This forecast comes from the company’s CEO, Maxim Sokolov.
High interest rates are causing customers to save their money instead of buying cars. In October, Russia’s central bank raised its key interest rate to 21%, aiming to curb inflation. Sokolov believes this will affect Avtovaz’s production plans and sales in the medium term.
The high interest rates are not just affecting the automotive sector but also threatening Russia’s broader economy. Many airlines are struggling due to economic pressures, with about 30 Russian airlines at risk of bankruptcy by 2025.