OREANDA-NEWS The Expert Council under the Committee on Industry and Trade of the State Duma of the Russian Federation predicts a reduction in production by domestic automakers to 50% amid falling demand caused by Chinese expansion, AvtoVAZ said in a statement.

According to experts, this is exactly the scenario that the industry expects, while maintaining current trends, state support is needed. In particular, an increase in the recycling fee.

"According to experts, while maintaining current trends, domestic automakers will be forced to reduce production by up to 50% due to the forced transition to a single-shift mode of operation (instead of two shifts) caused by a drop in demand in their price segments, where imported Chinese cars will be presented due to large-scale discounts," it is noted following the meeting held by the president "AvtoVAZ" by Maxim Sokolov.

The report also notes that in such a situation, Russian companies will be forced to produce only low-tech outdated products, will not be able to finance R&D (research and development) and the development of their capacities, and create new high-tech jobs. All this will negatively affect the achievement of technological sovereignty and industrial growth.

"An initiative has been put forward to systematically increase the recycling fee, which will stimulate investments by foreign companies in the creation and development of local industries. The expert community, as part of the discussion at the Council, proposed to establish a gradually increasing scale of recycling fees for cars, commercial and trucks, agricultural, construction and road equipment, buses, as well as electric vehicles," the message says.