OREANDA-NEWS   The Russian authorities are providing support to domestic automakers in order to prevent prices for new cars from rising too sharply. Thus, First Deputy Prime Minister Denis Manturov explained the assistance to companies in a comment to RIA Novosti.

As for reducing the cost of cars, then, as the official explained, high inflation prevents this. However, assistance serves as a kind of damper for domestic enterprises.

AvtoVAZ, the largest Russian manufacturer of passenger cars, has been most actively asking for support in recent years. In particular, he achieved a significant increase in the recycling fee, which is compensated to domestic car factories from the budget. The head of AvtoVAZ explained that without this measure, the company would lose competition to the Chinese automotive industry.

Earlier, the head of Rostec state corporation (co-owner of AvtoVAZ) Sergey Chemezov said that the government was discussing a new format for supporting the manufacturer against the background of an increase in the Central Bank's key rate. According to him, without such programs, the company will not be able to develop and will still lose to the Chinese.

Meanwhile, Sokolov did not rule out that the company's production plan for 2025, which was approved at the level of 500 thousand cars, may be cut due to dynamically declining sales. Experts also expect that due to the sharp rise in prices for new cars, the Russian market will shrink by more than ten percent.