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The report in focus

Automotive Industry In Russia. Results of 2019. Prospects

Automotive Industry In Russia. Results of 2019. Prospects

Exit date 02.06.2020

Format PDF, 55 стр.

Price 960 eur.

report contains information on automotive vehicle production in Russia, particularly passenger cars and commercial vehicles

02 june 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

Key figures of the Russian truck parc

News

AvtoVAZ will receive the first part of VEB loan in the coming months

AvtoVAZ will receive soon the first part of an approved loan of Vnesheconombank (VEB) for RUB 60 billion more than a year ago.

The last week, VEB has decided to finance the investment program of AvtoVAZ, and after 1-2 months the plant is expected to receive the first RUB 10-12 billion, the President of AvtoVAZ, Igor Komarov, informed the newspaper “Vedomosti”. The corporation will allocate RUB 60 billion totally for the car plant until 2020. These loans of VEB should cover one-third of the investment of “AvtoVAZ” group, which is estimated at RUB 180 billion by 2020. AvtoVAZ has applied for funding of several projects, for financing of which, in addition to its own funds, is planned to use loans, said Mr.Komarov.

One of the key project is the modernization of the line of the main assembly line in Togliatti in 2014. The first line is producing already Lada Largus and Nissan Almera, and the production of Renault will begin at the end of this year. There will be also be made not only Lada cars, but also the vehicles for the alliance in the upgraded line from 2015 (models are not disclosed). The base for the updated line will be AvtoVAZ’s platform B and Lada will have the bulk of production, says Mr. Komarov. The company expects that the new project will not be more expensive than the working line – EUR 400 million, he added. Planned capacity is about 360,000 cars a year, the first cars are planned to be produced by company in 2015.

Another project, for which funds are involved from the bank, according to Mr.Komarov, is the organization of licensed production at AvtoVAZ of 1.6-liter gasoline engine (new modifications with a capacity of 90-120 and 115 HP) and gearboxes for manufactured in Russia models of Lada, Renault and Nissan. The production capacity of about 500,000 engines a year is scheduled to begin at AvtoVAZ in 2015, the investment could reach € 378 million.

Another big project is the modernization of the Izhevsk site, added the head of AvtoVAZ. Costs for the modernization of the plant are close to RUB 2 billion, says Mr.Komarov, and AvtoVAZ plans to invest another RUB 12 billion. According to him, AvtoVAZ will invest in the project, and technical re-equipment is in charge of Nissan. After the production modernization in Izhevsk, Granta hatchback and vehicles for the alliance are produced (from 2014) together with Lada cars (now it produces one model - Granta), said Mr.Komarov. After upgrading, the capacity of Izhevsk area will grow from 100,000 to 300,000 cars a year.

Terms of allocation of funds were not commented by Mr.Komarov and the representative of VEB. According to the analyst of “VTB Capital", Vladimir Bespalov, VEB will lend, likely, at the refinancing rate of the Central Bank plus 2-4%, but as it is an investment loan, the government will subsidize 90% of the refinancing rate and the rate will be 3-5% .

AvtoVAZ need loans for its investments realization, as it is unlikely enough of its own cash flow during the next two years, notes Mr.Bespalov. Revenue of AvtoVAZ by IFRS in 2012 was RUB 190.1 billion, the net profit – RUB 29.2 billion, but the bulk of its income was the revenue from the discount of interest-free loans of “Rostech” for RUB 27.6 billion. Adjusted operating loss of group is estimated by Mr.Bespalov at more than RUB 3 billion. The situation will improve with the launch of new models of AvtoVAZ and the recovery of the Russian car market, expected the analysts, but it is reduced for a while.

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