UPDATE: Putin: AvtoVAZ handles car production, hopes for price fall

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MOSCOW, Dec 14 (PRIME) -- President Vladimir Putin said on Thursday that Russian carmaker AvtoVAZ keeps up with car production and also expressed hope that increased production would lead to lower prices.

"But that must be said, AvtoVAZ keeps up with the quantity, but the more there are (cars), the lower the price will be,” Putin said during a united Direct Line Q&A session and an annual news conference.

The carmaker produces a small quantity of cars, but works on this issue, he said.

“I hope that this (increase in production) will lead to lower prices, but the most important thing is to create our own platforms and develop them,” the president said.

He also said that a 40% hike in car prices is too much.

The car components industry in Russia has been lost, it must be rebuilt, and the Industry and Trade Ministry and the producers are actively working on it, Putin also said.

An official of the Industry and Trade Ministry told PRIME that the daily car price monitoring by the Federal State Statistics Service and price publication allow the government to track the information and prevent an unjustified price growth.

There are also agreements on price policy with the producers and dealers. There is possibility to stimulate demand for Russia-made cars with state incentives, the official said.

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