CEO says AvtoVAZ expects Lada prices to fall soon

MOSCOW, Jul 14 (PRIME) -- The prices for Lada cars will decrease to a certain extent soon, as preferential car lending programs will be launched, and the ruble will stabilize, AvtoVAZ President Maxim Sokolov said on Thursday.

"The Industry and Trade Ministry is elaborating programs to support demand which will help cut the final car price. It may affect the average market price, but still, this is important. We think that some stabilization, price correction may be seen soon," Sokolov said.

The CEO added that AvtoVAZ had to stockpile the components at a higher ruble rate in the first half of the year to ensure company operations and through new logistic chains.

“The supply chains were disrupted and, ensure uninterrupted operation of the conveyor, -- I will not keep mum on it – we are sometimes forced to decide to deliver some components by air,” he said.

“Of course, this also affects prices. But we undertake these costs to keep the conveyor running, although the production costs increase.”

According to Sokolov, AvtoVAZ will not relaunch the Lada Duster model in 2022. In the medium term, the company will start producing new crossovers on the Lada Vesta platform, and in the long run, AvtoVAZ plans to establish a new family of Lada cars, including type C class cars.

"Yes, the entire line, the entire family of models. Sure, this will require large investment. But our clients want to drive modern cars," Sokolov said.

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