AVTOVAZ will control prices for LADA cars at dealers

In May 2023, AVTOVAZ will set the maximum allowable prices for the sale of LADA cars for the dealer network. The president of AVTOVAZ, Maxim Sokolov, informed TASS about it, by emphasizing that if the price ceiling is exceeded, the company will impose sanctions against dealers, up to the termination of contracts. According to him, the company cannot fix the specific cost of a car at dealers, but the legislation allows setting a price ceiling. At the same time, Mr. Sokolov said that prices for LADA cars will rise by 2% in average from May 1. At the same time, the overall increase in prices for brand cars this year will not exceed the predicted inflation rate in the country in 2023. As the head of AVTOVAZ noted, now the level of cost of LADA cars is quite high due to the deep degree of localization, as the cost of production of components for local enterprises is higher than for global suppliers due to lower production volumes.

As AUTOSTAT previously reported, the uninterrupted production of complete LADA cars from mid-May will become impossible due to the fact that a number of suppliers of components for which there is no replacement yet notified AVTOVAZ of the termination of supplies and violated the existing agreements to maintain supplies in 2023. In this regard, corporate vacation for employees of the enterprise, which was scheduled for three weeks from July 24, will be postponed to the period from May 29th to June 19th. According to AVTOVAZ, this decision will allow the company to gain time and replace component suppliers, which will ensure more rhythmic work in the second half of 2023.