Summary
- Kamaz will shorten its work week and cut production amid a truck market crisis.
- Over 30,000 Kamaz trucks remain unsold in warehouses despite heavy discounts.
- The Russian heavy truck market has slumped 60%, causing inventory and financial pressure.
- Kamaz lowered its 2025 sales forecast from 80,000 to 45,000–50,000 trucks.
- Cheap Asian imports create “catastrophic price pressure” on Kamaz.
- AvtoVAZ, Russia’s top carmaker, is also considering a shorter work week due to falling sales.
- The crisis highlights wider issues in Russia’s auto and manufacturing sectors, worsened by sanctions and supply chain problems.
- Kamaz stopped production earlier this year due to low orders but recently restarted.
- The exact new work week schedule is unclear but may shift to three days.
- Government and industry experts are watching closely as Kamaz is a key Russian truck maker and employer.
Why Is Kamaz Shortening Its Work Week?
As reported by the editorial team at Reuters, Kamaz confirmed on Friday that a combination of slumping demand, mounting unsold inventory, and falling prices forced the company to take the extraordinary step of reducing both output and its work schedule.
Citing figures from Kamaz executives, Global Banking & Finance Review reported over 30,000 Kamaz trucks are currently sitting unsold in warehouses, even as the company slashes prices to record lows:
“Kamaz said over 30,000 trucks were sitting in warehouses with no demand even at dumping prices and equipment was being offloaded at well below market value”.
What Are the Main Factors Behind the Truck Market Crisis Facing Kamaz?
According to Devdiscourse,
“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”.
This plummet deals a major blow to a company that has long prided itself on meeting the needs of Russian logistics and industry.
The market contraction is not limited to Kamaz. In separate reporting for The Moscow Times, journalists noted that AvtoVAZ—Russia’s leading carmaker—is also mulling a shorter week as sales shrink across the sector. AvtoVAZ itself expects Russia’s car market to contract by 25% this year.
What Role Do Asian Imports and Economic Factors Play?
TASS, citing Kamaz Deputy CEO Mikhail Matasov, highlighted that,
“The inventory of trucks of 2024 year of manufacture from Asia applies catastrophic price pressure to Kamaz, while costs of domestic vehicles manufacturing are growing continuously”.
This dual effect of surging costs and cutthroat competition from Asian manufacturers has made it exceedingly difficult for Kamaz to maintain profitability or reduce unsold inventory.
Sanctions-related difficulties, supply chain interruptions, and a volatile economic landscape for Russian manufacturers are aggravating the crisis, according to commentators across multiple outlets.
What Has Kamaz Leadership Said About the Sales Outlook?
Speaking at a roundtable in the Federation Council, as covered by TASS, Deputy CEO Mikhail Matasov revealed,
“We consider this [lowered sales forecast] a kind of a base case scenario but it is also the optimistic one.”
Initial forecasts of 80,000 units sold have now been reduced to just 45,000–50,000 for this year, with little hope the market will recover soon.
The company faces what it describes as “catastrophic price pressure,” stemming largely from imports and falling demand domestically. These challenges are forcing Kamaz to examine previously unthinkable options for downsizing operations in both the short and medium term.
How Will the Shortened Work Week Affect Kamaz Employees?
Kamaz employs thousands of skilled workers in Russia, and any reduction in working hours directly impacts their livelihoods. According to multiple news agencies, management is still working through the exact details, but a three-day work week has been circulated as one potential approach.
In past years, Kamaz has occasionally halted production due to low order volumes, as a company spokesperson told China Trucks: “Russia’s largest truck maker Kamaz has resumed production, after a lack of orders led to a three-week halt,” referencing disruptions prior to the current crisis.
This latest announcement signals a further escalation in company responses to financial distress and market headwinds, raising concerns for workers, suppliers, and regional economies that depend on Kamaz.
What Has Been the Response in Russia’s Automotive Sector?
The Kamaz crisis is indicative of broader struggles among Russian automotive manufacturers. The Moscow Times highlights similar steps being considered or undertaken by other large manufacturers like AvtoVAZ, where leadership has been forced to contemplate trimming work schedules to avoid layoffs and cash-flow problems.
Industry analysts warn that unless demand in Russia’s heavy vehicle sector rebounds or state support is strengthened, more companies may be forced to follow Kamaz’s lead in slowing production and curbing costs. The risk of a domino effect throughout the Russian industrial landscape remains high, given interconnected supply chains and the centrality of Kamaz to the country’s transport infrastructure.
What Are the Broader Economic and Social Implications of Kamaz’s Decision?
As reported by Devdiscourse, Kamaz’s move has “sent shockwaves through Russia’s heavy vehicle supply chain,” with suppliers, distributors, and regional government officials reportedly concerned about cascading impacts on regional employment and economic stability. Kamaz’s home region of Tatarstan and other truck-dependent areas could see significant social strain if the crisis persists.
The combination of high inventory, intensifying foreign competition, and ongoing economic headwinds also raises questions about the effectiveness of current state policies intended to support Russia’s manufacturing base in the face of international sanctions and shifting global demand.
How Is Kamaz Planning to Recover or Adapt?
Kamaz management, speaking through various outlets, did not offer detailed recovery plans, focusing instead on the urgent need to balance production with slumping demand. Possible measures discussed in industry circles include more aggressive discounting, increased appeals for government purchases, and further production slowdowns.
It remains unclear whether these strategies will be enough to prevent further layoffs or restrictions in the near term, given the persistent nature of the downturn. The company will likely need to reassess both its product offerings and export strategies to survive in an increasingly hostile global truck market.
What Comes Next for Kamaz and Russian Automotive Manufacturing?
With the future of Kamaz closely tied to the fate of Russia’s heavy vehicle market, analysts and workers alike are bracing for additional challenges. The possibility of continued short-time working or even temporary idling of plants looms over Russia’s industrial heartland.
As Russia’s truck and automotive sector navigates through an uncertain period marked by falling domestic demand, challenging foreign competition, and a shifting global economic environment, the experiences of Kamaz may well serve as a bellwether for other companies in the sector.
For now, the industry’s hope is that concerted government policy and a stabilization in demand might offer relief, but few expect a turnaround in the immediate future. In the words of Kamaz’s own management, “We consider this a base case scenario—but it is also the optimistic one”.