(Bloomberg) — Renault SA’s car sales in Russia, its second-biggest market, were dismal last month and are about to get a whole lot worse.
Shipments of Lada vehicles produced by Renault’s Russian venture fell 17% in February compared with the same month last year, according to a statement Thursday. That’s the eighth straight monthly decline for the brand that dates back to the Soviet era.
Sales of Ladas will probably drop even more sharply due to sanctions over Russia’s invasion of Ukraine. The vehicles are made by Renault’s Avtovaz venture at two Russian factories, which have been operating at reduced capacity since the war started last month.
The Avtovaz business, which Renault majority owns, has made the French firm the most exposed automaker to the war at a time when its turnaround plan was already making slow progress due to global supply chain woes. Renault is the only major automaker not to have announced a pull back from Russia either on vehicle trade or production from local factories.
Renault declined 4.7% at 11:36 a.m. in Paris. The manufacturer has lost about a quarter of its market value since the start of the invasion.
Read more: Renault Is Said to Be Reluctant to Leave Russia Over Costs
Avtovaz has blamed factory downtime on a lack of electronic components. In a move that will further reduce near-term output, the venture this week announced it’s pulling forward the start of what was supposed to be an extended summer vacation for assembly line workers to April 4 from July 25.
“This solution will allow the company to accumulate the necessary stock of components to ensure a more stable operation” of the Russian plants in late April and May, Avtovaz said in a statement.
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