The report in focus

Automotive market in Russia

Automotive market in Russia

Exit date 23.05.2019

Format PDF

Price 1320 eur.

This is the seventeenth edition of our annual reference book «Automotive market in Russia», covering results of 2018. It contains statistics and analytics on production, sales and vehicle parc in our country.

23 may more info

Analytics

Russian dealers of Ford began sales of updated Mondeo

Ford Mondeo sedan has received a technological upgrade aimed at the safety improving of the car and improving of the intelligent driver assistance systems. People can order updated Ford Mondeo at all official Ford dealers in Russia.

05 julymore info

Infographics

What models are the best selling in the SUV subsegments in the Russian Federation?

News

AvtoVAZ is going to raise prices for cars slower than inflation

The management of AvtoVAZ promises that prices for Lada cars will grow slower than inflation this year but new rules of scrappage fee payment may prevent these plans. The President of AvtoVAZ, Igor Komarov, said about it in the on-line interview with “Arguments and facts”. Changes in the payment of scrappage fee are expected no earlier than six months, said Mr. Komarov, referring to developers from the government. The company will satisfy the current applications for Lada models by the current prices”, - he said.

According to the newspaper “Vedomosti”, AvtoVAZ raised retail prices by 3% in average in 2013 (from January 28th). The representative of plant didn’t remark whether new price increasing are planned this year. In 2010, as well as in 2011, AvtoVAZ raised recommended prices one time (it was by 2% and 4%, respectively), in 2012 – prices grew three times (the growth was 6% in average with inflation of 6.6%). The new increase should be no earlier than the second half of year, supposes the manager of Lada group subdivision of “Avtomir” (“Avtoplaneta”), Dmitriy Pelich.

Meanwhile, the additional stimulus for AvtoVAZ to raise prices could appear in 2013. The Minister of economic development, Andrey Belousov, said on Thursday that the mechanism of scrappage guarantees could be canceled in Russia and car plants that presented guarantees (about 340 companies, including AvtoVAZ) will have to pay a scrappage fee together with importers. It collects from September 1st 2012, the basic rate for passenger cars is RUB 20,000. According to Mr. Belousov, the authorities develop a compensatory mechanism for companies operating in the industrial assembly regime (such agreements with the Government were concluded by all leading Russian and foreign car companies, including AvtoVAZ.) If the compensation will not be, then loses of car makers will run into billions of Roubles.

Coefficients are used for this fee estimation. The coefficient is 1.34 for engines that are installed in Lada cars (1.4-1.6-liter at passenger models and 1.7-liter – at crossovers Lada 4x4). So, the plant will pay RUB 26,800 for each car to be sold in Russia. Costs of AvtoVAZ can increase by RUB 14 billion with annual sales at the level of 2012 – it is twice more than the net profit by IFRS in 2011 (RUB 6,7 billion).

The recommended retail prices of Lada are RUB 269,000-482,100. Accordingly, if the company includes the scrappage fee in prices (as some importers did in autumn of 2012), then Lada cars will be more expensive by 5.5%-10%. According to analyst of “VTB Capital”, Vladimir Bespalov, it will not happen: the government is not interested in the car industry situation deterioration, so it will compensate the additional costs for car makers. The significant price increase is not profitable for AvtoVAZ, the sector of low-cost cars, where it works, is the most sensitive for price changes, added the expert.

27.02.13 AA "AUTOSTAT"
Source: www.autostat.ru