However, in recent months, the market has begun to experience a significant contraction caused by the increase in the Central Bank's key rate, which has made it impractical to produce cars in stock.
In addition, the company's operations are affected by competition from Chinese automakers. Sokolov emphasized that it is important for AvtoVAZ to maintain a balance between production capacity and market demand. He noted that the increase in the utilization fee has not yet had a tangible impact on the market, as Chinese manufacturers have created significant stocks of cars in Russia, which makes it difficult to raise prices.
The head of the company also said that at the moment there are more than 500,000 Chinese-made cars in the country, which has a negative impact on demand. Sokolov added that AvtoVAZ expects that the surplus of Chinese cars will not be exhausted until the middle of next year, and this situation has a significant impact on the company's production and investment plans, VGTRK reported.
Earlier it became known that the Russian auto giant will start equipping its cars with diesel internal combustion engines. Also, the growth of scrappage duty will force many Chinese brands to leave the Russian automobile market, experts believe.