The AvtoVAZ concern may reduce its production plan for this year, which amounts to 400 thousand Lada cars, by 10%. According to the company’s president, Maxim Sokolov, due to sanctions, AvtoVAZ “repeatedly suffered a disruption in its logistics and financial chains” this year.
“It should be noted that the sanctions decisions did not pass without a trace: it was a serious, not a blank shot at the economy and our enterprise. But we survived it no matter what. We have not reduced the productivity of our conveyors, we are moving at the same speed,” Maxim Sokolov said at the Transport of Russia forum.
“It will be a little less: the correction will be within 10% for an obvious reason: because of the sanctions, logistics and financial chains failed again,” said Maxim Sokolov, speaking about the adjustment to the plan for the year.
According to him, from the beginning of the year until October, AvtoVAZ has already produced 293 thousand cars. At the end of November, the concern’s sales are forecast at 37.5 thousand cars, which is 8.3% less than in October, when the company sold a record number of cars over the past 10 years – 40.9 thousand.
Maxim Sokolov also added that, despite the sanctions, the company expects positive financial results this year. In January, he said (the company does not publish reports) that AvtoVAZ’s net profit according to IFRS for 2022 amounted to 1.6 billion rubles.
Read more about the situation in the auto market in the article “Car lending returns during the pandemic.”