[02 Feb] AvtoVAZ Jan Sales in Russia Down 38% on Year to 17,300 Cars

Russian auto giant OAO AvtoVAZ sold 17,300 cars on its domestic market during January, 38% less than a year earlier, the company said.

The company accounts for around a quarter of Russia's total car sales, and has slashed production this year as it continues to use state subsidies to fight against the threat of bankruptcy.

Russia's car market shrunk suddenly in autumn 2008, and the ongoing contraction of AvtoVAZ's sales compared with year-earlier figures will be of concern. Even so, many car makers say that their sales 12 months ago were inflated because they had to slash prices in order to sell off excess stock.

AvtoVAZ, which is part owned by Renault SA, also exported 600 cars.

(Source: irco.biz)