This Chinese strategy caused major loss to Russia, amid dwindling economy, its biggest carmaker has cut down...,

Amid the Russian debt crisis, Russia's largest car manufacturer, Avtovaz, will reportedly reduce its workweek starting September. The company has considered reducing its workweek from five days to four days. Avtovaz is the biggest car maker in Russia with Lada cars being its most famous automobile brand. This move is very surprising coming from one of the biggest state-owned employers. The company has taken the decision due to declining sales which has been due to high interest rates and massive competition from Chinese manufacturers.

The company has been seeing a decline in its business as its car sales dropped by 25% in the half-yearly (first six months). Avtovaz also claims that the current declining situation has been contributed to by the Central Bank's high interest rates, which have reduced the demand for car loans and increased production costs. This has been largely due to the decline in growth and recession which has gripped the Russian economy.

According to a report, the structural cracks in the economy of the largest country are now becoming apparent even amid Kremlin’s pretention of a stable economy. In its continuous war against Ukraine which is in its fourth year Russia has neglected its buckling economy due to sanctions and military losses. But the country has maintained its illusion.

As the West continues to put more sanctions on Russia, it is continuing to spread its propaganda to cover its damage.

Russia has dedicated its major spending on the Ukraine war which has impacted the economy. Avtovaz has also been hit by the comparatively low-priced Chinese cars being sold in the Russian market which has made the company’s cars less popular among buyers. Massive sales of Chinese cars account for more than 50% of sales in Russia. More than 30,000 of Avtovaz’ employs are in the city of Tolyatti, which makes it financially strong. Earlier the government had offered financial assistance to prevent the company from bankruptcy.

Avtovaz has faced many challenges due to the economic impact of the Ukraine war and competition from Chinese cars, as well as the company's importance to the Russian economy and the government's role in supporting it.