Car production in Russia is continuing to fall, declining by 19.8 percent in July, Russian business daily Vedomosti reported Tuesday.
Production has slumped by 18.1 percent over the past seven months, with figures falling more sharply each month, the newspaper reported. Car production declined by 5.3 percent in June.
The trend is a result of steadily falling car sales, according to experts. Car sales in Russia fell by 16.6 percent in July, and by 12.5 percent in June, the Association of European Businesses in Russia revealed earlier this month.
Industry representatives predict that fall will continue throughout August, before potentially stabilizing in October or November, Vedomosti reported.
The Government stimulates the demand for cars on the Russian market through a number of programs, including a vehicle renovation scheme. The renovation program alone cost 22.5 billion rubles ($352 million) in 2016, Vedomosti reported, providing a significant boost to the car industry.
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