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Fourth Russian Automaker Cuts Workweek Amid Deepening Industry Slump

Alexander Avilov / Moskva News Agency

The Likinsky Bus Plant (LiAZ) has joined a growing list of Russian automakers shifting to a four-day workweek as the country's auto industry faces mounting pressure from collapsing demand, according to sources cited by the state-run RIA Novosti news agency.

The decision was taken as Russia's automotive industry struggles with shrinking demand and an oversaturated market. 

"This is a necessary measure caused by a 60% decline in the bus market as a result of reduced purchases of new vehicles," the company said.

The Gorky Automobile Plant (GAZ) announced a similar move in July, set to begin after its companywide holiday ends on Aug. 3. KamAZ will introduce shorter hours for underutilized divisions on Aug. 1, while AvtoVAZ is preparing to follow suit on Sept. 29.

According to Autostat, total new vehicle sales including passenger cars, trucks and buses fell 28% year-on-year in the first half of 2025, with just over 601,800 units sold. Passenger car sales alone stood at 530,400.

Executives and analysts attribute the slowdown to high interest rates, weak consumer demand and a glut of unsold inventory.

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