AvtoVAZ says wants more state support over falling ruble

MOSCOW, Mar 10 (PRIME) -- Russia’s largest carmaker AvtoVAZ may raise prices for its cars and would welcome more state support for the car industry due to the ruble devaluation, a spokesperson for the company told PRIME on Tuesday.

The ruble fell to its 4-year low of 72 against the U.S. dollar and 82 rubles against the euro on Tuesday following the Monday’s contraction in oil prices.

“AvtoVAZ is keeping a close eye on the macroeconomic situation developments, on contraction of oil prices, on fluctuations in the ruble, and on the cost of raw materials. We see this situation as a negative factor for the Russian car industry and for AvtoVAZ in particular…AvtoVAZ would welcome more extensive support measures for the car market from the Russian government in order to soften consequences of the situation,” the spokesperson said.

“AvtoVAZ is one of the most localized producers in Russia today, but the company still feels the impact of raw materials prices and products of some subcontractors that are nominated in the euros or U.S. dollars…Judging by the development of the situation, the company is considering a possibility of adjusting prices for its products,” the person added.

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