Kamaz Struggles Amid Russia's Truck Market Crisis

Kamaz, a prominent Russian truck manufacturer, plans to reduce production and shorten its workweek in response to a 60% slump in the heavy truck market. High borrowing costs and excessive equipment imports are major contributors. Over 30,000 trucks remain unsold, symbolizing Russia's broader economic challenges.

Russian truck giant Kamaz announced on Friday plans to scale back production and implement a reduced workweek amid a deepening crisis in the country's truck market. The company pinpointed the short-sighted import policy and the central bank's elevated interest rates as primary catalysts.

This announcement follows similar moves by Avtovaz and the Gorky Automobile Plant, with both entities contemplating a shift to a four-day workweek due to high borrowing costs that are stifling demand. Analysts expect the Bank of Russia to cut rates significantly in response.

Kamaz reported that the market for trucks exceeding 14 metric tons plummeted by 60% in the year's first half. Furthermore, over 30,000 trucks remain unsold, even at significantly reduced prices, accentuating the economic woes faced by Russia post-overheating growth fueled by military spending.

(With inputs from agencies.)